TeamLease Degree Apprenticeship has released a new study highlighting the transformative potential of the Indian government’s initiative to establish 50 e-commerce export hubs. These hubs are expected to generate 2.25-2.75 lakhs new jobs in the sector, significantly enhancing India’s export capabilities. Additionally, this expansion is set to change the logistics sector, which is currently experiencing a 12% CAGR.
Recent data shows that online vendors have generated 15-16 million jobs, including 3-4 million for women, contributing to greater workforce diversity. This expansion has extended beyond entry-level positions, with a marked increase in marketing, merchandising, and management roles, reflecting the sector’s growing complexity and scope.
Additionally, the industry has made a shift towards outsourcing tasks traditionally managed in-house, particularly in HR and administrative functions, with a significant number of businesses adopting this approach, underscoring the broader impact of e-commerce on employment patterns as the sector continues to drive a wave of employment opportunities in the country.
The growing significance of the logistics industry is closely linked to the expansion of e-commerce hubs; there has been an increasing integration of advanced technologies such as AI, robotics, data analysis, and cybersecurity.
This technological shift has led to rising demand for specialized roles across various sectors, including retail management, cross-border trade, logistics and supply chain coordination, global marketplace operations, digital payment solutions, data analytics, international customer support, export compliance, international marketing, sustainability, and tech-enabled trade facilitation, emphasizing the need for professionals with the skills to optimize these technologies for efficiency and growth.
However, the logistics industry faces considerable challenges due to its largely unorganized structure, with only 10% of the sector comprising formal players and just 4.5% of the workforce being skilled. This lack of formalization poses a significant hurdle to the industry’s potential for job creation, particularly as the demand for skilled labour grows. The widespread shortage of skilled workers further limits the sector’s ability to harness new technologies fully.
Additionally, with only 41% of offline vendors engaging in digital upskilling or creating new employment opportunities, there is a pressing need for initiatives focused on workforce skilling and formalization to support the logistics industry’s ongoing development and technological advancement.
Sharing his insights on bridging the gap, Ramesh Alluri Reddy, CEO, TeamLease Degree Apprenticeship, said, “India is making significant strides in transforming its economy by focusing on emerging sectors and integrating advanced technologies like AI. As part of this transformation, the government established 50 e-commerce export hubs that boost exports to $100 billion and strengthen India’s global trade presence. These hubs are creating a demand for a highly skilled workforce, especially in the logistics sector, due to the rapid expansion of e-commerce. With logistics apprentices growing from 400 in 2018-19 to over 20,000 in 2023-24, and given the expansion of e-commerce hubs and the logistics sector, we project a 50% year-on-year increase in apprentices over the next three years.’’
He added, ‘‘Government programs such as NATS, PMKVVY, and the Skill India Mission are emphasizing hands-on experience through Work Based Learning Programs (WBLPs) and apprenticeships to support this growth. These initiatives will play a crucial role in equipping workers with the necessary skills for complex roles, ensuring India’s competitiveness on the global stage.”
TeamLease Degree Apprenticeship is India’s largest Degree Apprenticeship service provider offered through a partnership with 22 universities pan-India, including TeamLease Skills University (TLSU) and an impanelled third-party Aggregator. The company acts as a critical facilitator between industry, academia, youth, government & industry bodies for the penetration of and improvement of the effectiveness of work-based learning programs, including apprenticeships, across India. The company has hired about 1 million apprentices with more than 1000 employers in the past ten years. Through its Degree Apprenticeship Program, TeamLease focuses on enhancing the employability quotient of the youth of our country and bridging the skill deficit.
