India’s apprenticeship ecosystem is witnessing unprecedented momentum, solidifying its role as a key driver of workforce transformation as per the Outlook Report for Q1 2024-25 (Jan-Mar) of TeamLease Degree Apprenticeship of TeamLease Services.
It points to a record-high Net Apprenticeship Outlook (NAO) of 76%—an 8% surge from the previous Oct-Dec 2023-24 period. This historic rise in NAO signals a fundamental shift in employer sentiment, with businesses increasingly recognizing apprenticeships as a strategic lever for talent acquisition, cost-effective hiring, and industry sustainability.
The Drone industry, a sector poised for exponential expansion, leads the charge with an unparalleled 86% NAO, reflecting an aggressive push toward skilling specialized talent. EV & Mobility follows closely with a robust 75% NAO, underscoring the sector’s commitment to building a highly skilled workforce for India’s transition to sustainable transportation. Meanwhile, Global Capability Centers (GCCs), with a 79% NAO, are leveraging apprenticeships to fortify their talent pipelines and drive operational excellence in the global business landscape. These models are not just cost arbitrages; they represent a paradigm shift in workforce development, where apprenticeships play a crucial role in nurturing future-ready professionals, enhancing domain-specific expertise, and driving long-term business sustainability. These industries are not just embracing apprenticeships—they are rewriting workforce strategies, fostering innovation-driven skilling models, and creating a dynamic talent ecosystem primed for future disruptions.
India’s Emerging Apprenticeship Hubs: Cities Driving Growth
With NAO surging across industries, key cities are transforming into apprenticeship powerhouses driven by business-friendly policies, infrastructure expansion, and industry diversification. Hyderabad, Nagpur, Chennai, Indore, Pune, and Bengaluru have emerged as frontrunners, setting new benchmarks for apprenticeship engagement. Bengaluru, Chennai, and Pune, India’s IT and automotive hubs, continue to attract top-tier apprenticeship talent, reinforcing their status as innovation and manufacturing centers. Hyderabad, propelled by its thriving IT sector, is witnessing unprecedented apprenticeship adoption, further cementing its role as a technology-driven employment hub. Nagpur, riding the wave of green energy, mobility, and manufacturing investments, has experienced an NAO surge from 76% to an astounding 91%—an indicator of strong employer sentiment and apprenticeship demand. Indore, bolstered by infrastructure advancements and investor-friendly policies, has also seen a sharp NAO increase to 81%, up from 64% in the previous quarter. These cities are no longer just economic growth centers; they are shaping the future of India’s skilled workforce, ensuring a seamless blend of industry-relevant training and employability-driven learning models.
Third-Party Aggregators (TPAs): The Game Changer in Apprenticeship Acceleration
Furthermore, as organizations recalibrate their skilling strategies, Third-Party Aggregators (TPAs) are emerging as crucial enablers of scalable and efficient apprenticeship management. The latest report reveals a 9% increase in TPA adoption compared to the previous period, marking a transformational shift in employer engagement. The impact is staggering: the percentage of employers not associated with TPAs has plummeted from 70% in HY2 Oct-Mar 2023-24 to just 23% in Jan-Mar 2024-25. Moreover, 57% of employers (up from just 19%) are now actively exploring TPA partnerships, recognizing their value in streamlining apprenticeship implementation, ensuring regulatory compliance, and enhancing operational efficiency. This evolution signals a definitive move toward structured, outcome-driven apprenticeship models that are not only future-proof but also aligned with industry demands for scale and sustainability.
Apprenticeships Paving the Path to Permanent Employment
Beyond the numbers, a transformative trend is unfolding—apprenticeships are emerging as a direct pathway to full-time employment. 75% of organizations are now consistently absorbing apprentices into permanent roles post-training, acknowledging the effectiveness of structured skilling programs in building a job-ready workforce. Employers are prioritizing learning agility (79%) as the most critical factor for retention, followed by enhanced on-the-job training (66%), deeper industry-academia collaboration (51%), and structured mentorship programs (49%). This proactive approach to talent development is reshaping workforce dynamics, fostering technical expertise, and ensuring long-term retention of skilled professionals—ultimately strengthening India’s position as a global talent powerhouse.
Apprenticeships are no longer confined to traditional trades but are evolving to meet the demands of advanced technologies and sustainable industries. Gender-neutral apprenticeship opportunities are gaining momentum, with sectors like BFSI, Retail, and Electrical Engineering showing greater inclusivity. Skilling is becoming an essential cornerstone for India’s growth, as highlighted in the latest Apprenticeship Outlook Report. The report shows a remarkable rise in the Net Apprenticeship Outlook (NAO) across all 14 Focus Industries, reflecting the growing shift toward apprenticeships as a key workforce solution. Notably, IT & BPM leads with an impressive 88% NAO (up from 62%), and the highest increases have been observed in Biotech, Pharma, and Life Sciences (77%, an increase of 34%) and Healthcare (86%, up by 33%). These industries, along with Electronics & Electricals, Telecommunications, and BFSI, are leveraging apprenticeships to address the growing demand for skilled talent.
Sharing his insights on the growing skilling momentum, Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, added, “This rise is driven by strategic workforce planning, cost-efficient hiring, and a focus on enhancing gender diversity. Large enterprises (85%, up from 77%) and medium-sized businesses (77%, up from 71%) are leading this trend, with all categories of businesses seeing a boost in apprenticeship adoption. Government initiatives such as Make in India, the Production Linked Incentive (PLI) schemes, and the rise in academia-industry collaboration have accelerated this growth, enabling employers to recognize the business benefits of apprenticeships in closing skill gaps, boosting productivity, and optimizing long-term workforce costs. To sustain this momentum, businesses must prioritize structured apprenticeship programs, expand partnerships with Third-Party Aggregators (TPAs), and foster deeper integration with educational institutions. Additionally, the increasing focus on women’s participation in sectors like solar and semiconductors signals positive change toward a more inclusive workforce.”
