CEA Nageswaran urges shift from software/MBA focus to trade and human-centric skills

Chief Economic Advisor V. Anantha Nageswaran has called for a major shift in India’s employment and education priorities, stating that the long-standing preference for software jobs and MBA degrees is fading and that greater emphasis must now be placed on trade-based skills such as welding, plumbing, electrical work, and carpentry.Speaking to ANI, he said India has historically failed to provide adequate respect and recognition to skilled manual professions. He pointed out that countries like Switzerland, Germany, Japan, South Korea, and China accord high dignity to vocational trades, treating them as essential to economic development and social prestige.“In this country, we give them little respect. If you are a welder, plumber, electrician, or carpenter, India doesn’t value it. We have made it unacceptable, unrespectable, and unfashionable. That needs to change,” he said.Nageswaran argued that rapid technological progress and artificial intelligence are transforming labour markets globally. He said that while earlier decades favoured software engineering, computer science, and management education due to globalisation, that phase is now weakening.Former RBI Governor Raghuram Rajan Says AI Job Apocalypse May Be Exaggerated; Adoption, Politics, & Market Forces Will Decide Impact “The technological advance cannot take away your employability. You should equip yourself with trade skills. The era of globalisation-driven software and MBA dominance is over. The focus now is on trade skills and soft skills that AI cannot easily replace, where human presence is essential,” he said.He stressed that India must address both unemployment and unemployability by building a workforce capable of working in sectors less vulnerable to automation. According to him, significant job creation potential exists in manufacturing as well as service sectors such as caregiving, culinary arts, hospital support, sports education, elder care, and counselling for children with special needs.“These are areas the world needs trained professionals in, not just India. They will not be impacted by AI. We must build employability in these sectors,” he added.Nageswaran also noted that global economic fragmentation requires India to strengthen its manufacturing base and focus on skill development. He described unemployment as a “livelihood problem” and said future policy must balance industrial growth with large-scale vocational training and human-centric job creation.

Chief Economic Advisor V Anantha Nageswaran has called for a shift in India's approach to employment and education, saying the era that favoured software jobs and MBA degrees is coming to an end and that the country must place greater value on trade skills such as welding, plumbing, electrical work and carpentry.Speaking to ANI, Nageswaran said India has historically failed to accord dignity and respect to skilled manual professions, unlike countries such as Switzerland, Germany, Japan, South Korea and China, where vocational trades enjoy social prestige and are seen as critical to economic success."In this country, we give them little respect. If you are a welder, a plumber, an electrician, and a carpenter, etc., India doesn't consider [them]... We kind of made it unacceptable, unrespectable, and unfashionable. I think that needs to change," he said.Nageswaran argued that technological advances and artificial intelligence are reshaping the labour market, making trade skills and human-centric professions increasingly valuable."The technological advance cannot take away your employability. So you should equip yourself with trade skills. The globalising world gave us an advantage for our software, computer science or MBA education. But that era is over. It's about trade skills. It's about soft skills, which AI cannot easily replace, where human presence is required," he said.The Chief Economic Advisor said India must tackle both unemployment and unemployability simultaneously by creating opportunities in sectors that remain labour-intensive and are less vulnerable to automation.According to him, significant employment potential exists in manufacturing as well as services such as caregiving, culinary arts, hospital support, sports education, elder care and counselling for children with special needs."In all these areas, the world needs qualified and trained people, not just India. Those are all the areas which will not be impacted by AI. We need to create employability in these areas," he said.Nageswaran's remarks come amid growing concerns over the impact of AI on white-collar jobs and the changing nature of work globally. He noted that while India benefited enormously from the globalisation-driven boom in services exports, the world is becoming increasingly fragmented, making it necessary for the country to strengthen its manufacturing base and workforce skills.He also described unemployment as fundamentally a "livelihood problem", arguing that India's future employment strategy must balance industrial competitiveness with large-scale skill development in trades and people-centric professions.