Job creation under latest PLI for IT hardware to outpace estimates: Industry leaders

According to TeamLease Degree Apprenticeship's estimate, the latest decision will see 25-30 percent growth in new job creation in the IT hardware industry, of which another 25-30 percent is expected to be fulfilled by women employees.

The latest approval for production-linked incentive (PLI) schemes for IT hardware will spur immediate growth in hiring for skilled, semi-skilled and unskilled labour, staffing firms say. However, a large chunk of people would be hired for specialised job roles.

In May, the cabinet approved a renewed PLI scheme for IT hardware worth Rs 17,000 crore with a six-year tenure, aimed at boosting the domestic manufacturing of laptops, tablets, all-in-one PCs, servers and ultra-small-form-factor devices. It is anticipated to stimulate incremental production worth Rs 3.35 lakh crore and create 2 lakh employment opportunities.

However, industry leaders say government estimation of job creation is conservative.

“Direct employment is estimated by the ministry as 50,000 and indirect as 1,50,000. We feel the estimation by the ministry is very conservative. If we do the maths, based on expected market growth, the number would be close to 2 lakh direct employment and about the same as indirect employment,” said Shishir Gupta, CEO and co-founder at appliance manufacturer Oakter.

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According to TeamLease Degree Apprenticeship's estimate, the latest decision will see 25-30 percent growth in new job creation in the IT hardware industry, of which another 25-30 percent is expected to be fulfilled by women employees. The PLI scheme, in general, is expected to spur employment offtake to the tune of 20 percent year-on-year growth in the next three to five years, in the hardware industry.

“The PLI scheme requires companies to commit to hiring a certain number of apprentices as part of their investment. This is helping to create new opportunities for young people to learn skills and gain experience in manufacturing,” said Sumit Kumar, chief business officer of TeamLease Degree Apprenticeship.

Surge for specialised roles

Staffing company Michael Page India predicts the demand for specialised roles to surge following the decision as project managers are becoming pivotal in orchestrating complex projects, while network engineers lay the digital groundwork for seamless connectivity.

“Cloud, AI and DevOps specialists are also emerging as the architects of innovation. On the production front, the focus is on automation, requiring skilled manufacturing and quality control managers to steer this transformation,” said Anshul Lodha, managing director, Michael Page India.

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In sales and marketing, professionals adept at navigating the digital marketplace are crucial. The fulfilment sector is not far behind, with logistics and inventory control experts playing a critical role in optimising supply chain efficiency, Lodha added.