2018 Global Economic and Market Outlook
The Ivy investment team’s views on the global economic landscape and investment themes for 2018.
Indian Prime Minister Narendra Modi’s “Make in India” program, designed to bring more high-grade manufacturing to the subcontinent, is facing a labor shortage, according to the Wall Street Journal.
A report surveying 650 of India’s engineering colleges found that more than 80% of India’s engineers are “unemployable” due to a lack of specialized training and coursework. To combat this issue, the government has announced two skill development programs, totaling nearly $3.3 billion dollars, in order to train 15 million people by 2020.
“During the engineering course, we were given the theoretical background. Here, we are doing the actual drilling,” said Anubhab Dutta, a recent mechanical engineering graduate who is training at the Advanced Craftsmanship Centre inside Tata’s sprawling factory complex.
The Indian government isn’t the only one investing in its workforce, however. Western companies, such as Boeing, Alstom and GE, have also begun investing more heavily in their own training programs.
“India doesn’t have a labor shortage—it has a skilled labor shortage,” said Tom Captain, a global aerospace and defense industry leader at Deloitte Touche Tohmatsu.
The “Make in India” program is part of PM Modi’s overarching goal of modernizing the country’s military, railways and other infrastructure, while strengthening India’s industrial sector. (Source: Wall Street Journal)
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