Building a safer, more skilled blue-collar workforce for India’s manufacturing sector

India’s manufacturing sector is at the forefront of the country’s economic resurgence. Once dominated by the services sector, manufacturing has now become the cornerstone of growth—driven by the government’s Make in India campaign and its renewed focus on industrial development.

The sector's growth inherently demands skilled workers for production lines and facility maintenance. This expanding need for hands-on expertise places India's blue-collar workforce at the heart of this revival.

According to a report by Indeed, blue-collar workers constitute over 80% of the non-agricultural workforce in India—a testament to their role in reshaping the nation’s economic trajectory. From operating assembly lines in busy factories to handling logistics and supply chains, these employees are the backbones of large-scale production across India. 

As the country aspires to cement its position as a global manufacturing hub, it is both an ethical imperative and economic necessity to ensure the blue-collar workforce’s skill development and safety. To take this vision forward, it is crucial to look closely at why this workforce segment requires focus. 

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The importance of empowering blue-collar workers

The growing focus on manufacturing has created a rising demand for skilled blue-collar employees across key industrial sectors. Estimates from McKinsey & Company suggest that by 2030, 70% of 90 million new jobs in India will be blue-collar roles. This projected growth requires a workforce, equipped with modern skills and a safer working environment. 

To excel at modern manufacturing practices, the workforce needs specialised training for emerging niches gaining ground in India—from precision engineering and advanced materials processing to custom component manufacturing and new technology. These newer manufacturing capabilities require tailored training programmes beyond just technological skills.

Foundries, for instance, often struggle to find skilled workers to support the new-age industry requirements. This creates productivity bottlenecks and desired quality output. Additionally, many sectors crucial to manufacturing demand workers skilled in digital literacy and data analysis, emphasising the need for targeted skill development programmes.

In addition to the skill gap, India’s manufacturing sector continues to grapple with challenges to workplace safety. As per the Industrial Union report, in 2024 alone, over 400 workers lost their lives due to safety lapses—with 240 workplace accidents traced back to the manufacturing, energy, and mining sectors.

The use of heavy machinery, the prevalence of hazardous chemicals, and poor compliance with safety protocols contribute to these unfortunate incidents. 

Clearly, there is a pressing need to implement strong safety protocols. The silver lining is that in India and globally, governments are prioritising initiatives to ensure skill and safety among blue-collar employees. 

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The role of the government in promoting better work environments

The Indian government has launched several initiatives to enhance welfare and skill development for the blue-collar workforce. The Pradhan Mantri Kaushal Vikas Yojana (PMKVY), for instance, provides short-term skill training. The Indian Institute of Skills also addresses this gap by offering training programmes in various cutting-edge fields.

Additionally, the e-Shram portal brings unorganised workers under social security coverage to address gaps in benefits like health insurance and pensions.

Globally, too, governments have taken proactive measures to improve blue-collar work environments. In Germany, for instance, the dual education system integrates vocational training with classroom education, creating a skilled workforce for specialised manufacturing roles. Similarly, Sweden’s robust safety regulations and worker councils ensure high standards of workplace safety and employee welfare.

These measures, in India and abroad, reiterate that governments and policymakers can make sweeping positive changes that benefit the blue-collar workforce. While India has taken steady steps towards this goal, we can also benefit from other collective measures to improve the blue-collar workplace ecosystem.

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Building a holistic working environment

Automation can effectively minimise human intervention in high-risk activities at work. Technologies like robotic arms and automated assembly lines can not only enhance India's manufacturing efficiency but also position it as a safer and more attractive destination for global manufacturing contracts. 

World-class manufacturing also demands world-class safety standards. Beyond basic compliance, Indian manufacturers must implement stringent safety protocols that match global benchmarks—like dedicated safety teams, advanced ventilation systems, and comprehensive training modules. These investments directly impact quality control and production efficiency—both essential for competing in the global market.

Alongside these measures to ensure workplace safety, skill development programmes are critical to ensure India’s global competitiveness. Collaboration between industry and academia can help design courses tailored to the needs of modern manufacturing. Another piece of the puzzle is a culture that values inclusivity and work-life balance. This is crucial for blue-collar workers, who may often be engaged in physically demanding roles. 

They could also benefit from corporate perks like healthcare, paid leave, and retirement plans—all of which can significantly improve morale and loyalty. Companies that foster such collaboration and provide clear growth paths for their workers create a sense of belonging that is often irreplaceable. 

These measures become increasingly relevant as we move into the future because blue-collar workers form the backbone of industrial growth. Their empowerment ensures a stronger and more resilient manufacturing ecosystem. With India aspiring to lead on the global stage, investing in its blue-collar workforce will be the catalyst that drives the sector to unprecedented heights, fosters long-term economic stability and promotes inclusive growth.

Bharat Gite is the Managing Director and CEO of Taural India.