'Plumbers Will Survive AI': Raghuram Rajan Flags India's Failure To Train For Hands-On Jobs
Former Reserve Bank of India (RBI) Governor Raghuram Rajan has cautioned that India's current approach to skill development is misdirected, potentially leaving a significant portion of its workforce unprepared for the future job market. Rajan's concerns revolve around the country's apparent over-emphasis on high-skilled, technology-driven sectors, while neglecting the crucial need to train and equip individuals for hands-on, vocational jobs that are less susceptible to automation by Artificial Intelligence (AI).
Rajan's critique comes at a time when AI is rapidly transforming the global employment landscape. While AI is projected to create millions of new jobs, it also poses a risk of mass job displacement, potentially affecting a substantial portion of the Indian workforce. Reports indicate that AI could displace millions of jobs in India's tech sector alone, even as it creates new roles. This shift necessitates a proactive approach to reskilling and upskilling, ensuring that workers are equipped with the skills needed to thrive in an AI-driven economy.
However, Rajan argues that India's skilling programs are not adequately addressing this challenge. He points out that there's a significant gap between college degrees and the practical skills demanded by employers. While initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) have trained millions in various skills, including AI and robotics, a disconnect persists between training and actual workplace requirements. This is further substantiated by the fact that only a small percentage of Indian companies are able to successfully hire AI-skilled workers.
The former RBI governor suggests that India needs to focus on creating jobs across all levels, rather than just targeting high-end positions. He stresses the importance of upskilling individuals for existing jobs and providing "last mile remedial training". This includes investing in education and healthcare to build human capital, which he believes is essential for long-term economic growth. Rajan has expressed concerns that the government is too focused on high-profile projects like chip manufacturing, instead of fixing the education system. He feels India has a fixation with hardware, with building assets, when its strength is the human mind, its skills.
Rajan's remarks carry significant weight, especially considering the increasing demand for skilled plumbers and other tradespeople in India. Rapid urbanization, infrastructure development, and construction activities are driving the need for qualified plumbers to install, repair, and maintain water systems in residential, commercial, and industrial settings. Despite this demand, the "Skill India" mission faces challenges, including inadequate short-term courses and a reluctance to provide basic equipment, leading to a high dropout rate in the plumbing trade.
In light of these challenges, Rajan suggests a more localized and industry-aligned approach to skill development. He proposes that each district function as a micro-economy, with vocational training providers, polytechnics, and ITIs offering short, modular courses co-created with industries. This "precision skilling" would ensure that training is tailored to local economic needs and real job opportunities.
While AI and automation may transform many sectors, some jobs, particularly those requiring hands-on skills and human interaction, are likely to remain in demand. As Microsoft India President Puneet Chandok noted, AI will dissect and unbundle jobs, but continuous learning and adaptation are key to avoiding job displacement. By focusing on practical skills and addressing the weaknesses in its education system, India can better prepare its workforce for the future, ensuring that even in an era of rapid technological advancement, "plumbers will survive AI".
