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The automotive industry has been pivotal in shaping India’s economic trajectory, fostering industrial growth and innovation, employment, and cross-sectoral linkages. Since the delicensing and allowance of 100% foreign direct investment (PIB 2007), the industry has expanded rapidly, increasing its share of national gross domestic product (GDP) from 5% to 7% in the last two decades (IDC 2008; PIB 2025). The industry is also a critical employer, supporting nearly 37 million jobs nationally (PIB 2023a).

The transport sector in India is undergoing a historic shift toward electrification, aligned with the country’s climate commitments. Transport is the country’s third-largest greenhouse gas (GHG) emitting sector, accounting for around 14% of energy-related carbon emissions in 2020. Of this, road transportation, including passenger and freight, comprises more than 92% (CEEW 2022). This necessitates cleaner alternatives, with electric vehicles (EVs) a promising option given their zero tailpipe emissions.

The transition to EVs offers new employment opportunities in emerging industry segments, including battery manufacturing and charging infrastructure, while also reducing GHG emissions and strengthening energy security. India’s ambition to achieve a 30% EV sales share by 2030 and progress toward the vision of Atmanirbhar Bharat (Self-reliant India) by 2047 could support these outcomes (PIB 2023b). Policy interventions have played a central role in accelerating EV uptake nationwide. Flagship schemes such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) I and II schemes launched in 2015 and 2019, respectively, and the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM e-DRIVE) operational since 2024, have supported both demand creation and charging infrastructure deployment.

As manufacturing shifts to complex electric drivetrains, having skilled workers across the board will be critical to achieving EV adoption targets. EV value-chain manufacturing will drive demand for battery production, power electronics, and software integration. New technologies, coupled with increasing automation, will require a workforce equipped with advanced, specialized skills. Jobs will also increase in R&D and quality engineering, which are critical to ensuring EV and component quality standards.  Meeting this demand requires a comprehensive assessment of workforce composition, skill requirements, and the capabilities of India’s skilling infrastructure. A coordinated, forward-looking strategy for reskilling and workforce development, paired with targeted investment, can evolve the skilling ecosystem in line with industry needs, fostering a fair, inclusive, and sustainable transition.

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