White Paper: India Will Be The Only Talent Surplus Country In 2030
By 2030, it is estimated that the demand for skilled professionals will outpace supply, resulting in a scarcity of 85.2 million workers, and leading to a global talent crisis, costing trillions of dollars in potential revenue. The talent crunch is expected to impact the growth of markets across countries, regions and industries, draining companies' resources as they struggle to find the right talent and stay competitive. The United States, UK, France, and UAE will be the hardest hit, losing out on a combined $1.876 trillion in revenue. This unprecedented shakeup demands leadership to act now or forfeit substantial growth opportunities.
India, in sharp contrast, will be the only country with a highly skilled talent surplus in 2030.
The savviest organizations, as they prepare to mitigate the potential crisis, would do well to heed India's favourable forecast, and the opportunities the country's burgeoning talent pool offers. In this synopsis, we breakdown the significant socioeconomic and policy drivers fuelling the talent oversupply and its benefits, that are detailed and explored further in our White Paper.
Much of India's talent surplus is due to the country's demographics. Close to 36% of India's population is less than 17 years of age and only 3% of it is part of the workforce providing a huge window of opportunity to integrate these citizens in the economic growth story. Similarly, 12.7% are aged 18-24 years of age just starting their careers. In contrast, countries around the world such as China will soon face a shortage of working-age people due to an ageing population; the workforce in European Union is set to shrink by 96 million by 2060. But with around 12 million people joining the working population every year, India is geared to reap the benefits of a demographic dividend.
These workers are expected to have the professional and vocational skills that the industry will require, owing to the country’s many technology institutes, as well as decades of government initiatives to boost workers' skills. Already India has around 52,000 higher education institutions, producing more than 1.69 lakh doctorates, more than 40 lakhs post graduates and more than 2.98 crore graduates across various fields. And recently, the government set up the Skill India Campaign with an aim to train 400 million people in different skills by 2022, displaying the policy focus of the country to produce an educated workforce for itself and the world.
With the rise in the level of education, the rise in quality is already visible. India provides the world's smartest workforce to some of the biggest businesses across the globe. For instance, IBM's workforce in India was reported to be more than 1.3 lakh people - one third of its total global workforce in 2017. And CISCO calls its Bengaluru campus its "second world headquarters." Both examples are a testimony of the talent pool in India. The importance of matching candidates to jobs as the skill set diversifies and jobs become narrower cannot be overemphasized as already 64% of companies in the UK are losing valuable time and resources by not being able to find the right candidate. Companies looking around the world for talent will find a ready reserve of competent employees in India.
While the Indian government is investing in education, it is also going full throttle on promoting entrepreneurship in the country, and making it an attractive business destination. India now has the second largest startup ecosystem in the world with more than 20,000 startups out of which 4,750 are tech startups. This number is doubling, and has attracted more than $4 billion of investment. Everything from e-commerce to fintech is being piloted in India and the potential growth is said to be unparalleled. Plus, there are more than 280 incubators, accelerators and coworking spaces which provide the infrastructural backbone for entrepreneurs to startup. As a result, India is a favourite for not just Indian but foreign investors to come and pilot their business models.
This startup revolution has coincided with one of the fastest periods of technology advancements in the world and India has found itself on the frontlines thanks to its excellent technology talent pool as well as the startup ecosystem that groom these professionals to create world class products. This has already opened up markets for Big Tech including Facebook, Amazon and Google.
So, from the way things stand, companies and countries in the year 2030 will be highly dependent on workers who can not only deal with emerging change but also be at the cutting edge of technology and produce viable top and bottom-line outcomes. For instance, the technology sector itself will require 4.3 million additional workers than the availability in 2030 which is 59 times the number of employees at Alphabet, Google's parent company. Jobs such as application engineers, data architects, or AI assisted technicians will be in hot demand.
At the same time given that India is expected to see a surplus of about 1.3 million workers by 2030, the talent shortage around the world is expected to be filled by skilled Indian workers backing on the infrastructural support to the start-up ecosystem as well as the advances that the country has made in educating and skilling its young workforce.
India's burgeoning talent pool is clearly to be a game changer when it comes to future-proofing talent pools or ensuring that the workforce is ready for the challenges of tomorrow. The need of the hour for businesses is to speed up plans to take advantage of the opportunities India's huge talent surplus offers if they aren't already doing so. It's best to make hay when the sun shines.
Thank you for reading the Executive Summary of our White Paper. If you would like the complete report, please email email@example.com to receive it.
In our White Paper, you will receive:
- India’s demographic dividend: realities and opportunities
- Education and Government-led skilling initiatives
- Entrepreneurial ecosystem in India
- Talent pipeline: staffing the workforce of the future
Simply email firstname.lastname@example.org for the complete paper.
Image credit: PCNA