India’s apprenticeship landscape is undergoing a profound transformation with the integration of work-based learning modules and emerging as a cornerstone of the nation’s skilling ecosystem. As industries evolve and the demand for future-ready talent intensifies, apprenticeships have become the linchpin connecting academia and industry. The latest Apprenticeship Outlook Report by TeamLease Degree Apprenticeship showcases this paradigm shift, revealing that the Net Apprenticeship Outlook (NAO) for the January-March 2024-25 quarter has skyrocketed to an unprecedented 76%. This isn’t just a number—it’s a clear signal that apprenticeships are now central to workforce strategies across sectors.
In a country where employability has long been a pressing challenge, apprenticeships are emerging as the perfect blend of education and employment, creating a sustainable pipeline of skilled professionals through work-based learning programs. The real divide in India is not between the rich and the poor, but between the skilled and the unskilled and this surge in apprenticeship engagement echoes this sentiment, highlighting how structured, work-based learning models are dismantling barriers to employment and fostering inclusive economic growth.
A Record-Breaking Apprenticeship Outlook
The NAO for the Jan-Mar 2024-25 quarter marks an 8% increase compared to the HY2 (Oct-Mar) 2023-24 period. This surge underscores a growing recognition among industries of the critical role apprenticeships play in workforce strategies. Employers are increasingly leveraging apprenticeships not just to fill skill gaps but to build resilient talent pipelines, optimize hiring costs, and foster workplace diversity.
This upward trend is indicative of a larger shift towards structured, work-based learning programs that combine academic theory with practical experience. The 76% NAO highlights how Indian businesses are realigning their hiring strategies to prioritize long-term talent development over short-term staffing solutions.
Sectoral Growth: Industries Embracing Apprenticeships
Out of the 14 focus industries covered in the report, 10 witnessed a notable increase in their Net Apprenticeship Outlook for the Jan-Mar 2024-25 quarter. This sectoral growth reflects a broad-based acceptance of apprenticeships as a viable solution to evolving workforce needs.
- IT & BPM has emerged as the frontrunner, registering an impressive 88% NAO—up from 62% in the previous period. The sector’s rapid digital transformation has intensified the demand for skilled professionals, making apprenticeships a key talent acquisition strategy.
- Biotech, Pharma, and Life Sciences experienced the highest surge with a 34% increase, reaching a 77% NAO. This jump reflects the sector’s strategic focus on cultivating specialized talent in response to rising global demand for pharmaceutical innovations and healthcare solutions.
- Healthcare followed closely with an 86% NAO, a 33% increase from the previous period. The sector’s expansion, driven by increased investments and the need for a robust healthcare workforce, has accelerated apprenticeship engagements.
These growth patterns reveal that industries traditionally seen as reliant on seasoned professionals are now actively investing in apprenticeship programs to cultivate future leaders and specialists through work-based learning.
Business Size and Apprenticeship Engagement
The report also highlights the role of business size in shaping apprenticeship trends. Large-sized enterprises continue to lead with an 85% NAO, up from 77% in the previous period. These organizations, with their vast resources and structured HR systems, are better positioned to scale apprenticeship programs, making them critical drivers of this growth.
However, medium-sized businesses are not far behind. With a 77% NAO—up from 71%—these enterprises are recognizing the cost-efficiency and long-term benefits of structured apprenticeship programs. For many, apprenticeships serve as a strategic approach to mitigate talent shortages and enhance workforce agility.
Interestingly, even small businesses are gradually embracing apprenticeships, driven by government incentives and a growing awareness of the benefits of work-based training. The upward trend across all business sizes highlights the universal appeal of apprenticeships as a sustainable workforce development strategy.
City-Wise Trends: Regional Hotspots for Apprenticeships
Apprenticeship engagement is not limited to metro cities; it’s gaining momentum in emerging urban hubs as well. The report identifies eight out of the fourteen cities covered as having shown a rise in their NAO.
- Hyderabad leads the pack with a 92% NAO, driven by its booming IT, pharma, and biotech sectors. The city’s proactive industry-academia partnerships have created fertile ground for apprenticeship growth.
- Nagpur follows closely with a 91% NAO, solidifying its position as a rising apprenticeship hub. The city’s focus on logistics, manufacturing, and IT has created new opportunities for skill development.
- Chennai, with an 83% NAO, continues to thrive on its strong manufacturing base and IT services sector, both of which actively engage apprentices to meet evolving industry demands.
The geographic spread of apprenticeship engagement indicates a growing realization that skill development is crucial not only in metro cities but also in Tier II and Tier III cities, where industries are increasingly seeking skilled talent.
The Driving Forces Behind Apprenticeship Growth: Towards Work-based Learning
The surge in apprenticeship engagement can be attributed to several key factors that align with employer strategies and broader economic goals:
- Augmenting/Creating Talent Pool (64%): Employers recognize apprenticeships as a direct pathway to building a skilled, future-ready workforce. With evolving technological landscapes, companies are focusing on cultivating talent that can adapt and innovate.
- Rationalizing Talent Costs (61%): Apprenticeships offer a cost-effective hiring model. By training apprentices in-house, companies reduce recruitment expenses and minimize onboarding time, leading to better ROI on talent investments.
- Boosting Gender Diversity (54%): Many employers are leveraging apprenticeships as a tool to promote workplace diversity. By creating inclusive apprenticeship programs, businesses are fostering gender balance and tapping into a broader talent pool.
At present, the record-breaking Net Apprenticeship Outlook for the Jan-Mar 2024-25 quarter underscores the growing relevance of apprenticeships in India’s workforce development strategies. As industries continue to prioritize skill development, cost optimization, and workplace diversity, apprenticeships are set to play an even more significant role in shaping the future of work.
TeamLease Degree Apprenticeship’s commitment to fostering industry-academia partnerships and promoting structured, work-integrated learning models is a testament to the transformative potential of apprenticeships. As India navigates the complexities of a rapidly evolving job market, apprenticeships offer a robust, scalable, and inclusive solution to bridging skill gaps and driving economic growth.
The journey ahead holds immense promise. With continued industry support, progressive policy frameworks, and sustained investments in skill development, apprenticeships will not only empower India’s youth but also strengthen the foundation of a future-ready workforce.
