The apprenticeship landscape in India is undergoing a strategic shift, with young people taking on white-collar assignments as opposed to the traditional blue-collar ones. Additionally, sunrise sectors such as solar and electric vehicles, as well as Global Capability Centres (GCCs), have opened up a plethora of opportunities.
Employers are now viewing apprenticeships as a sustainable talent development model rather than complying with regulations, according to a top executive.
Apprenticeship, which was once seen primarily as a compliance mandate (under the Apprentices Act, 1961, as per which organisations with more than 30 employees must engage at least 2.5% of their workforce as apprentices), has now evolved into a framework focused on capability, inclusivity, and measurable return on investment, the executive said.
“Across sectors, apprenticeships are helping organizations build future-ready and productive workforces by integrating upskilling into their business models. Over three-fourths of apprentices complete their training, and most are absorbed into full-time roles, proving that structured apprenticeship programs improve retention, productivity, and workforce stability,” said Nipun Sharma, CEO, Team LeaseDegree Apprenticeship in an interview.
He said employers were also investing in apprentice welfare by offering medical coverage, mentorship, transportation, accommodation, digital payments, and access to formal banking. “These efforts have enhanced engagement and have made apprenticeships a viable career entry point for India’s youth,” he added.
“GCCs are becoming major adopters of apprenticeships to develop high-end, knowledge-intensive roles across technology, analytics, and finance. Traditionally dependent on lateral hires, GCCs are now investing in structured apprenticeship models to cultivate in-house talent,” Mr. Sharma said.
“India’s qualified workforce and growing specialization needs are driving this shift, with apprenticeships providing structured learning pathways for new-age roles,” he added.
He said that as the demand for white-collar apprenticeships had been growing, the youth, rather than working on the shop floor, are being employed as Business Intelligence Analysts, Data Engineers, AI Data Scientists, Compliance Audit analysts, Mutual Fund Analysis, Business Correspondents, Software Developer Trainees, Associate Customer Care (Voice & Non-Voice) and Sales Trainees.
In the renewable energy, electric vehicles, and mobility sectors, employers were seen leveraging apprenticeships to address skill shortages in manufacturing, maintenance, energy systems, and automation, he said.
“EV and mobility companies are using apprenticeship frameworks to prepare technicians, assembly operators, and data specialists for an evolving green economy. These industries represent the next frontier of workforce development, where apprentices directly contribute to sustainability and economic diversification,” Mr. Sharma said.
He said the formalization of degree-linked apprenticeships in the latest Apprenticeship (Amendment) Rules, 2025, supported by industry sponsorships, has given the skilling ecosystem new legitimacy.
“These programs integrate academic study with paid, on-the-job training, allowing learners to gain both formal qualifications and real-world experience. Employers have realized that linking education with apprenticeship is mutually beneficial. The durations align with certifications: 6 months for a certificate, 24 months for a diploma, and 36 months for a degree,” Mr. Sharma said.
“As candidates who have spent 18 months would need only 6 more months to earn their diploma—and those who have spent 20 months would need just 16 more months to complete their degree—attrition rates in organizations have declined. Productivity has also increased, as curricula are co-designed through industry–academia collaboration. Finally, the overall cost of talent acquisition and training has come down,” he added.
However, he said a lot has to be done to harness the untapped potential. “While developed economies like the U.K. and Germany have 3–4% apprenticeship penetration, India’s rate remains just 0.27%, underscoring vast untapped potential,” he said.
“By cultivating a positive market and social sentiment around apprenticeships, India can leverage its demographic advantage—potentially 20 million apprentices in the coming years—to accelerate its journey toward developed India,” he added.
Published – November 21, 2025 11:08 am IST
