India is one of the fastest-growing major economies in the world.
We have a young workforce, a vibrant entrepreneurial ecosystem, and one of the largest talent pools globally.
Yet when economists compare productivity levels, an uncomfortable gap appears.
India’s labour productivity still remains significantly lower than many developed economies.
The reasons are often debated—technology gaps, infrastructure challenges, or industry maturity.
But there is another factor that receives far less attention.
Workforce capability.
𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆 𝗜𝘀 𝗡𝗼𝘁 𝗝𝘂𝘀𝘁 𝗔𝗯𝗼𝘂𝘁 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆
When organisations attempt to improve productivity, the first instinct is often technological investment.
Automation.
Digital tools.
Advanced machinery.
These are important.
But technology alone does not create productivity.
People who can effectively use technology do.
Without capable teams:
•Technology remains underutilised
•Process improvements fail to sustain
•Operational efficiency remains inconsistent
The gap between available tools and the ability to use them effectively becomes a hidden productivity barrier.
𝗧𝗵𝗲 𝗖𝗮𝗽𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗚𝗮𝗽 𝗜𝗻𝘀𝗶𝗱𝗲 𝗢𝗿𝗴𝗮𝗻𝗶𝘀𝗮𝘁𝗶𝗼𝗻𝘀
Across sectors, organisations frequently observe similar patterns:
• Employees require extended time to become fully productive
• Managers spend considerable time correcting operational basics
• Skill development happens reactively instead of systematically
• Early career employees struggle to transition from education to real work environments
Each of these issues slows down productivity growth.
Individually they seem small.
Collectively they shape national economic performance.
𝗪𝗵𝘆 𝗪𝗼𝗿𝗸𝗳𝗼𝗿𝗰𝗲 𝗦𝘆𝘀𝘁𝗲𝗺𝘀 𝗠𝘂𝘀𝘁 𝗘𝘃𝗼𝗹𝘃𝗲
Countries that achieve high productivity typically share a common characteristic:
They build strong bridges between education, training, and industry.
Learning does not remain confined to classrooms.
It happens alongside real work.
This creates a workforce that is:
•Job-ready earlier
•Capable of adapting to new technologies
•Aligned with the needs of industry
Over time, this alignment becomes a powerful productivity multiplier.
𝗧𝗵𝗲 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗔𝗵𝗲𝗮𝗱
India’s demographic advantage provides a rare opportunity.
If capability development keeps pace with economic growth:
Productivity can rise
Industries can scale efficiently
The workforce becomes globally competitive
But this requires moving beyond the idea that productivity improvements are only about capital investment.
They are also about human capability investment.
𝗔 𝗟𝗮𝗿𝗴𝗲𝗿 𝗟𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻
As India aims to become a global economic powerhouse, one question matters are we investing enough in building capabilities that sustain productivity?
Because while machines boost efficiency, its skilled and confident people who unlock true potential and drive real productivity.
06
Apr, 26