TeamLease Degree Apprenticeship has released a new study highlighting the transformative potential of the Indian government’s initiative to establish 50 e-commerce export hubs. These hubs are expected to generate 2.25-2.75 lakhs new jobs in the sector, significantly enhancing India’s export capabilities. Additionally, this expansion is poised to transform the logistics sector, which is currently experiencing a 12% CAGR.
E-commerce has emerged as a powerful engine for job creation and economic development. Recent data shows that online vendors have generated 15-16 million jobs, including 3-4 million for women, contributing to greater workforce diversity. This expansion has extended beyond entry-level positions, with a marked increase in marketing, merchandising, and management roles, reflecting the sector’s growing complexity and scope. Additionally, the industry’s evolution has spurred a shift towards outsourcing tasks traditionally managed in-house, particularly in HR and administrative functions, with a significant number of businesses adopting this approach, underscoring the broader impact of e-commerce on employment patterns as the sector continues to drive a wave of employment opportunities in the country.
The growing significance of the logistics industry is closely linked to the expansion of e-commerce hubs; there has been an increasing integration of advanced technologies such as AI, robotics, data analysis, and cybersecurity. This technological shift has led to rising demand for specialised roles across various sectors, including retail management, cross-border trade, logistics and supply chain coordination, global marketplace operations, digital payment solutions, data analytics, international customer support, export compliance, international marketing, sustainability, and tech-enabled trade facilitation, emphasising the need for professionals with the skills to optimise these technologies for efficiency and growth.
However, the logistics industry faces considerable challenges due to its largely unorganised structure, with only 10% of the sector comprising formal players and just 4.5% of the workforce being skilled. This lack of formalization poses a significant hurdle to the industry’s potential for job creation, particularly as the demand for skilled labour grows. The widespread shortage of skilled workers, especially in crucial areas like advanced equipment handling and complex international consignment management, further limits the sector’s ability to harness new technologies fully. Additionally, with only 41% of offline vendors engaging in digital upskilling or creating new employment opportunities, there is a pressing need for initiatives focused on workforce skilling and formalization to support the logistics industry’s ongoing development and technological advancement.
Sharing his insights on bridging the gap, Ramesh Alluri Reddy, CEO of TeamLease Degree Apprenticeship, stated – “India is making significant strides in transforming its economy by focusing on emerging sectors and integrating advanced technologies like AI. As part of this transformation, the government establishing 50 e-commerce export hubs that boost exports to $100 billion and strengthen India’s global trade presence. These hubs are creating a demand for a highly skilled workforce, especially in the logistics sector, due to the rapid expansion of e-commerce. With logistics apprentices growing from 400 in 2018-19 to over 20,000 in 2023-24, and given the expansion of e-commerce hubs and the logistics sector, we project a 50% year-on-year increase in apprentices over the next three years. Government programs such as NATS, PMKVVY, and the Skill India Mission are emphasizing hands-on experience through Work Based Learning Programs (WBLPs) and apprenticeships to support this growth. These initiatives will play a crucial role in equipping workers with the necessary skills for complex roles, ensuring India’s competitiveness on the global stage”.
Dhriti Prasanna Mahanta, Vice President & Business Head of TeamLease Degree Apprenticeship, emphasised, “The recent Union Budget 2024 has set the stage for transformative growth in the logistics sector. Capital expenditure is projected to deliver a 3.5X multiplier effect, combined with the development of multimodal infrastructure and cargo parks, which is expected to reshape supply chain networks across the country. The creation of E-Commerce Export Hubs aligns with India’s vision to become a global manufacturing leader, opening new international shipping and supply chain management opportunities. With the increasing embrace of automation in logistics and warehousing – through AI-driven inventory management, robotics, and automated cargo handling – the demand for expertise in advanced technology and logistics operations is rising. Work Based Learning Programs (WBLPs) bridge the employment-employability gap by training workers in critical skills like predictive analytics, process automation and route optimisation. By integrating theoretical knowledge with real-world experience, WBLPs equip workers with specialized competencies to optimize sophisticated systems, supporting India’s leadership in the logistics supply chain”.