For decades, a university degree was the passport to employment. Today, Indian manufacturers are asking a different question. As factories become smarter, and automated, is academic knowledge enough, or do problem-solving skills, and the ability to keep learning matter more?
This marks a significant shift in how Indian industry defines employability. The focus is moving from what people have studied to what they can do.
Skills Are Becoming a Business Imperative
The change reflects a broader transformation in the workplace. According to the World Economic Forum's Future of Jobs Report 2025, nearly 39% of workers' core skills are expected to change by 2030, while 85% of employers plan to prioritise workforce upskilling. These figures show that skill development is no longer simply an HR initiative. It has become a business necessity.
Employer experience points in the same direction. A study by Automatic Data Processing (ADP) research (ADP is one of the world's largest human resources and payroll processing companies) found that 90% of organisations adopting skills-first hiring reported fewer hiring mistakes. Nearly 94% said employees recruited for their capabilities outperformed those selected primarily on degrees, certifications or years of experience. As technology reshapes jobs faster than traditional education can respond, these findings are difficult to ignore.
Manufacturing Is Putting Capabilities to the Test
Manufacturing illustrates this transition quite well. Modern factories are increasingly powered by robotics, predictive maintenance, connected supply chains and data-driven quality systems. Job descriptions are evolving just as quickly. Employers need technicians who can master new automation systems, engineers who can work with AI-enabled production, and supervisors who can solve problems across disciplines.
The shop floor often adopts new technologies faster than academic institutions can revise their curricula. The resulting gap must be bridged in real time through industry exposure, practical training, and continuous learning. Knowledge remains important, but its value depends on the ability to apply it in changing environments.
This does not diminish the value of higher education. Degrees continue to provide essential technical foundations. What is changing is their role. They are becoming one indicator of potential rather than the definitive measure of capability.
Looking Beyond Degrees
That is why many organisations are broadening how they evaluate talent. Practical assessments, apprenticeships, vocational training, project experience and recognised industry certifications increasingly complement academic qualifications. Such an approach also widens access to capable candidates whose expertise has been built through experience rather than conventional educational pathways.
Hiring, however, is only the first step. A skills-first organisation must also become a learning-first organisation.
From Hiring Skills to Building Skills
The companies adapting most successfully are investing continuously in reskilling, cross-functional exposure, digital learning and structured career development. This reflects a simple reality: today's competitive advantage lies less in recruiting finished experts than in developing employees who can evolve alongside technology. In this environment, HR is becoming a strategic partner in business transformation, helping organisations anticipate future capability needs instead of merely filling vacancies.
The changing workforce adds another dimension. India's gig economy is expected to expand from 7.7 million workers in 2020-21 to 23.5 million by 2029-30. For manufacturers, this creates access to specialised expertise that can be deployed for technology upgrades, automation projects and product launches without replacing the core workforce. Permanent employees and specialist talent are likely to complement rather than compete with one another.
Human Capability Will Shape India's Manufacturing Ambition
India's ambition to become a global manufacturing hub ultimately depends on more than just investment in plants and machinery. It demands equal investment in human capability. As industries adopt smarter technologies and new production models, the ability to learn, adapt and solve problems will become a valuable economic asset.
Degrees will continue to open doors. However, it will be capabilities that determine who walks through them, and who continues to grow once inside.
Vinay Dhingra is Senior Director, HR & Administration, Corporate Affairs, IT at Honda Motorcycle & Scooter India and Trustee, Honda India Foundation. Views expressed are the author's personal.