The Hindu Business Line : `Shortage of skilled manpower likely'

New Delhi May 22 India Inc will face skilled manpower crunch in the next five years with the expected mismatch between demand and supply, according to an estimate made by the PHD Chamber of Commerce and Industry.

There are signals of manpower shortages with the growth rate perking up in the recent years and wage rates getting overheated.

The chamber estimates that manufacturing sector will be hard hit since there are two visible trends in the segment — firstly, greater degree of poaching by the information and communication technology sector and secondly, no visible organised effort at the private or public domain to create and upgrade the skill sets.

There will be qualitative differences in the type of manpower requirements of the manufacturing sector. With the increasing digitisation of the sector, the need will be for highly specialised and not for semi-skilled persons, which the Industrial Training Institutes churn out at present. This r

equires more investment and greater degree of private-public partnerships to shape the skill set of the new entrants to the job market from the technical institutions, according to the chamber.

Hunt for more

The services sector, which will grow at a faster rate than the agriculture and manufacturing sectors, will require more people.

Key drivers

Major segments that will draw more people are IT, banking, insurance, tourism and retailing among others, which will be the key drivers to economic growth. IT sector, including electronics, computer software and ITeS, is growing at over 30 per cent per annum. The manpower requirement for this segment will be close to three million workers in a year.

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