This age phenomenon is affecting productivity, efficiency, costs and progress.
12 Aug 2024 | 1463 Views | By Satyakam Arya, MD and CEO, DICV
The world, as we experienced it in the past, is rebooting itself in many ways. Simply put, it is how we restart our computers or smart phones when a software upgrade is being synchronised. The process, simply, is that we still have the same hardware but more advanced features and ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
The world, as we experienced it in the past, is rebooting itself in many ways. Simply put, it is how we restart our computers or smart phones when a software upgrade is being synchronised. The process, simply, is that we still have the same hardware but more advanced features and improved functioning to support our work or carry out complex tasks. If we apply this analogy to the world, you will see some similarities.
For starters, many countries are in economic or social turmoil, some countries are enduring active conflicts, which affects the rest of the world by way of rising inflation, travel being affected, and social media abuzz with information that we might wonder is genuine or not. Sharpen your vision and try to see through this clutter and you will realize that one factor, a significant one, is also affecting economies, businesses, and how the world works. And this is the age of the population.
Countries that we have aspired to travel or migrate to so far are growing old. For
instance, Japan, Italy and some Scandinavian countries have a large part of their
populace aged over 60. This is retirement age in most countries. This age phenomenon is affecting productivity, efficiency, costs and progress. Ironically, it is not just roads, fancy buildings, parks, railways and airports that indicate an economy’s health and potential. We many a times miss out on people in our analysis. But it is high time we pay attention to this phenomenon.
Niger, a country in West African, has the youngest population in the world with a medianage of 15.2. India’s median populace age is 29. We are quite a young country when compared with many others! And therefore, our ‘youth’ puts immense opportunities on our table. We must find ways to grab this opportunity and relentlessly work towards progress so that our future generations – the ones who are 29 years old today, and their children, prosper, and take our country forward as they prosper. This may seem like an abstract vision but put this plan on paper and you will be surprised to know how this would work out in our favour.
When we think of how wide a canvas Diversity covers, the first thought that might come to our minds is gender. But it is actually way more than that. Think about how age or generation will add some colour to the Diversity debate. At Daimler India Commercial Vehicles we are constantly trying to find ways to make our culture more inclusive, vibrant and progressive. Digitalization is one of the enablers of this movement. Of course, it makes our business more efficient, well connected, and sustainable but this is the realm of the younger generation that we are nurturing.
The United Nations’ Youth Digital Pathways for Sustainable Development harnesses technology to empower 1.2 billion young people globally, with 90% in developing countries. Hence, in an era of rapid technological advancements and evolving global economies, skilling youth has never been more crucial. As industries adapt to new technologies and market shifts, the demand for a skilled workforce grows. Countries prioritising skilling initiatives see higher economic growth and lower unemployment.
Opportunities In India
India's young demographic positions us as one of the youngest high-potential global economies, offering a significant advantage in terms of a large, energetic workforce. A young median age presents vast opportunities for economic growth and innovation, driving consumption and productivity. However, it also necessitates substantial investment in education, skill development, and employment opportunities to harness this demographic dividend effectively.
The Union Budget 2024-25 reflects the Indian government's proactive approach to skill development, fostering employability and entrepreneurship. Through initiatives like skilling 20 lakh youth, upgrading 1,000 ITIs over five years, and revising the Skill Loan Scheme, the government has taken the right step to empower India's youth, driving economic growth, and maximising the nation's demographic dividend.
The Automotive Scenario
The automotive landscape, driven by innovation, requires equipping the younger
generation with essential skills and knowledge. Also, digitalization plays a pivotal role by integrating advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics, digitalisation enables real-time monitoring and control of manufacturing processes. Smart manufacturing harnesses the power of automation and robotics to enhance productivity and quality by performing repetitive tasks with high accuracy and consistency. Therefore, a skilled workforce enhances productivity, attracts investment, and drives innovation, contributing to a robust economy.
Bridging Skill Gap
One of the most significant challenges in today’s job market is the skills gap. Many
educational institutions focus on theoretical knowledge, which often does not align with the practical skills required by employers. This mismatch results in a surplus of
graduates who are unprepared for the job market. By implementing targeted skilling
programs, we can bridge this gap, ensuring that educational outcomes align with
industry needs. Such programs are designed to provide practical experience and
specific competencies that are directly applicable to the job market, thereby increasing employability and job satisfaction.
BharatBenz operates several Regional Training Centres (RTCs) strategically located across India for on-time training of engineers, technicians and drivers. Each RTC spans thousands of square feet, accommodating 60 trainees at a time and equipped with trainers, tools, and BS6 vehicles for comprehensive technical training. Over the past four years, these centers have trained approximately 15,000 BharatBenz technicians, sales staff, and drivers. Furthermore, the BharatBenz National Skills Contest focuses on assessing and enhancing the knowledge, mindset, skills, and tools of dealership sales and service teams to enhance customer experience.
Fostering Intrapreneurship
Skilling is not limited to traditional employment but extends to fostering innovation and entrepreneurship. Young individuals equipped with the right skills are better positioned to start their own businesses, drive technological advancements, and create new market opportunities. Encouraging entrepreneurial thinking and providing the necessary resources and support can lead to the emergence of new industries and job creation. This entrepreneurial spirit is essential for a dynamic economy, as it drives progress and opens up new avenues for economic development.
DICV's partnership with IIT Madras Incubation Cell (IITMIC) focuses on mentoring startups and fostering innovation. This collaboration provides startups with expert
guidance, business development assistance, and technical support from both DICV and IITMIC. In the initial phase, few startups have been successfully incubated, and the second cohort has already commenced to welcome new ventures. The program aims to create a diverse portfolio of startups from various sectors. Additionally, DICV organises external and internal hackathons to encourage innovative solutions and creative problem-solving.
Driving Change Through DEI
Women are increasingly making their mark in the automotive manufacturing industry, breaking barriers and leading the charge toward a more inclusive and diverse workforce. Their contributions span from the assembly line to leadership positions, demonstrating expertise in engineering, design, production, and management.
Companies are recognising the value of gender diversity, implementing initiatives to support and advance women in the field. These efforts include mentorship programs, flexible work policies, and targeted recruitment strategies. The rise of women in automotive manufacturing not only promotes gender equality but also drives the industry forward by leveraging a wider pool of talent and creativity.
DICV has successfully initiated 'She Rise' in 2016, which is an initiative focused on identifying and developing potential women leaders within the organisation. As an equal opportunity employer, we are committed to equipping every individual with the necessary training, tools, and resources for their professional growth. To further this commitment, we have introduced LEAP (Learn-Excel-Achieve-Perform), a gender- neutral program designed to sharpen essential executive skills across various domains.
Together, 'She Rise' and LEAP reflect our dedication to fostering leadership and
inclusivity, and are integral to our mission of developing future leaders and building a diverse and capable workforce.
In summary
In summary, skilling youth is essential for driving economic growth, addressing
employment challenges, and fostering innovation. Industry players must take a crucial role in this process by collaborating with educational institutions, providing practical training opportunities, and supporting diverse and inclusive skilling initiatives. By investing in youth skilling, we can build a future-ready workforce that is equipped to tackle the challenges of a rapidly changing automotive world.
Satyakam Arya is the Managing Director and CEO, Daimler India Commercial
Vehicles. Views expressed are his own.