Nearly 45% of core skills are anticipated to change by 2030, with India necessitating an additional 3.2 million green-skilled workers by that time, as per a report by KPMG in India and the Confederation of Indian Industry (CII). The report highlights the current scenario in the MSME talent landscape, characterized by varying skill levels, limited formal skilling exposure, and differing digital readiness levels. Only 10% of the MSME workforce has received formal vocational training, while around 69% of MSMEs face challenges in acquiring skilled talent.
India’s MSMEs are urged to cultivate digitally adept, AI-enabled, and environmentally conscious talent to uphold competitiveness, given that the sector employs 32.84 crore individuals, contributing 30.1% to the GDP. Each MSME worker’s productivity is only 14% of that of a large-enterprise worker, indicating substantial growth potential in the MSME sector. The future of MSME work is expected to evolve with the dual transition and AI integration, shifting focus from manual tasks to human-machine collaboration.
The report outlines six strategic imperatives for MSMEs, including fostering an AI-prepared workforce, integrating apprenticeships with digital tools, prioritizing skills in recruitment, leveraging ONDC for digital market access, establishing cluster-based skill ecosystems, and embracing inclusive talent practices to enhance transition readiness. Sunit Sinha, Partner and Head of Human Capital Advisory at KPMG in India, emphasized the pivotal role of skills in determining the impact of AI on MSME operations. Naveen Aggarwal, Office Managing Partner at KPMG in India, hailed MSMEs as pivotal to India’s economic aspirations, stressing that future growth hinges on investments in high-value talent and governance capabilities.
