BUSINESS-ECONOMY
India's $250 billion tech sector plays an important role in the economy. The sector employs about 5.4 million people. Tech services make up about 7.5 per cent of the country's over $3 trillion gross domestic product. According to NASSCOM, the demand-supply gap for digital talent is projected to expand from 25 per cent in 2028 to around 29 per cent in 2029. An industry group said the country's tech sector is going to need over a million engineers with sophisticated AI and other capabilities in the next two to three years. So, there needs to be a major increase in government funding for education and training in India to meet that demand. India has a large workforce compared to any country in the world. However, the employability of the workforce is a huge challenge and will require a fair amount of work to fill positions in areas like artificial intelligence, big data analytics, and cyber-security. The tech industry will have to reskill over 50 per cent of its current employees. What makes it more challenging is that the industry can't do with one-time up-skilling. It must be a continuous journey amid a fast-changing digital landscape. This is where the country's education and training base comes into focus. The government needs to invest significantly to be able to support this important sector. India's $250 billion tech sector plays an important role in the economy. The sector employs about 5.4 million people. Tech services make up about 7.5 per cent of the country's over $3 trillion gross domestic product. According to NASSCOM, the demand-supply gap for digital talent is projected to expand from 25 per cent in 2028 to around 29 per cent in 2029. There is a significant gap between the workforce's skill set and the requirements of tech companies like Tata Consultancy Services. This is making it difficult for TCS to fill open positions and might make Indian tech firms less competitive with multinational powerhouses like IBM and Accenture. Last month, TCS announced that the skills gap is preventing it from filling 80,000 positions. In June, the biggest engineering and construction company in India, Larsen & Toubro, announced that its tech-enabled services division was short twenty thousand engineers. Sangeeta Gupta, senior vice president and chief strategy officer at the National Association of Software and Service Companies based in Bengaluru, said that the inadequate quality of education in India, from elementary school to high school, is the main cause of the country's skill gap. She added that colleges fail to equip students with the practical skills necessary to succeed in today's labour market. A recent report from the International Labour Organisation estimates that college-educated young people are more likely to be unemployed than those without any schooling. In a nation like India, where half of the over 1.4 billion people are under the age of 30, the lack of education would impede development opportunities. Will the government increase funding for education and training in the budget? Will there be a special focus on the tech sectors' needs? All eyes will be on the budget on July 23rd for answers to these questions and more. None
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