India's workforce has evolved through four industrial revolutions, shifting from artisanal skills and mechaniwation in the First Industrial Revolution to technical and digital skills in the third
As India aims to become a $1 Tn digital economy, the ongoing Fourth Industrial Revolution demands adaptability, creativity, and a global-local integration approach
Find out how today's ambitious professionals can build an edge in their career
India stands on the precipice of a new era, one defined not by the gears of machines or the hum of computers, but by the interplay of big data, artificial intelligence and human ingenuity.
To understand how we arrived at this moment, we must journey through the annals of history, tracing the evolution of skills and mindsets that have shaped India’s workforce across the industrial revolutions.
This is the story of how India’s skills and mindset have transformed, from the dawn of mechanisation to the age of AI.
The First Industrial Revolution: The Mechanisation
As the 18th century waned, India was at the crossroads of tradition and change. The clatter of looms and steam engines signaled the beginning of a new era.
Under British colonial rule, the landscape of labour began to shift, driven by the forces of mechanisation and industrialisation.
Skills Valued: In this era, there was a massive demand for skills related to operating and maintaining machinery, particularly in textiles. The age-old artisanal skills, once the backbone of India’s economy, began to take a backseat, although they remained relevant in many regions.
Meanwhile, the expanding industrial operations created a need for basic literacy and numeracy. Workers who could read, write, and manage simple accounts found themselves in administrative and managerial positions.
Mindset: The transition from manual to machine-operated work demanded a fundamental shift in mindset. Workers had to learn to embrace technology, often reluctantly.
Where once there was flexibility, now there was discipline and routine. Factory schedules were strict, and tasks were repetitive, forcing workers to adapt to a more regimented way of life, far removed from the rhythms of agrarian or artisanal work.
Impact On India: India’s role in the global economy during this period was largely dictated by colonial interests. The British saw India primarily as a source of raw materials and a market for their manufactured goods. The skills cultivated and valued were only those that supported this economic structure. This period set the stage for India’s industrial future, but it also highlighted the limitations imposed by colonial rule.
The Second Industrial Revolution: Electrification and Expansion
The dawn of the 20th century brought with it a wave of innovation that would once again reshape industries and societies.
Electrification, mass production, and the expansion of railways drove industrial progress at an unprecedented scale.
Skills Valued: As India’s industries grew more complex, so did the demand for specialised skills. Engineering and technical expertise became essential.
The railways, a key focus of British investment, required a new class of skilled workers – engineers and technicians who could design, build, and maintain the sprawling network.
Manufacturing became specialised too, requiring workers who could master specific processes within factory settings.
Alongside these technical roles, the expansion of industry brought a need for administrative skills. Those who could navigate the intricacies of industrial administration found themselves in crucial roles.
Mindset: This era was characterised by a relentless drive for efficiency and productivity. The assembly line became the symbol of progress, and with it came an expectation that both workers and managers would optimise every aspect of production.
The rise of industrial cities sparked urbanisation as individuals moved from rural areas to industrial centers for better opportunities.
Impact On India: India’s industrialisation during this period was focused on industries that served the colonial economy, such as textiles and railways. While the Indian workforce began to develop technical skills, innovation was stifled by the restrictive nature of colonial rule.
The Third Industrial Revolution: The Digital Transformation
By the mid-20th century, another transformation was taking shape – this time driven by digital technology. The rise of computers, information technology, and automation would redefine industries and create new economic growth opportunities.
Skills Valued: In India, Information technology (IT) became the cornerstone of economic growth, particularly in cities like Bangalore, Hyderabad, and Pune.
Skills in software development, coding, and IT services were in high demand, as India positioned itself as a global leader in these fields.
The shift towards a service-oriented economy also placed a premium on skills in communication, customer service, and business management, all of which were crucial in the booming IT and BPO sectors.
Mindset: The digital era fostered a culture of innovation and entrepreneurship in India. The success of the IT sector inspired a new generation of entrepreneurs.
This period also emphasised the importance of continuous learning. As technology evolved rapidly, professionals needed to regularly update their skills to stay relevant.
Furthermore, the integration of India into the global economy required a broader perspective – understanding international markets and cross-cultural business practices became essential for success.
Impact On India: The Third Industrial Revolution saw India emerge as a global IT powerhouse. The country shifted from being a low-cost labour market to becoming a knowledge-driven economy.
However, this growth was uneven, with urban areas reaping the benefits while rural regions were often left behind.
The Fourth Industrial Revolution: A New Frontier
Today, we are in the midst of the Fourth Industrial Revolution – characterised by the convergence of technologies such as artificial intelligence, big data, robotics, biotechnology, and the Internet of Things (IoT). The rapid pace of change presents both challenges and opportunities for India.
Skills Valued: In the era of AI and automation, where machines can perform most technical tasks, the skills that matter most are those that machines cannot replicate.
This is why soft skills like emotional intelligence, communication, and leadership are becoming the new edge for professionals. These skills are essential for fostering collaboration and guiding teams through complex, rapidly changing environments.
The Fourth Industrial Revolution also demands interdisciplinary knowledge. Professionals who can bridge the gap between technology and business will be in high demand. Digital literacy and AI competency are becoming fundamental skills, as they permeate every aspect of life and work.
Mindset: The old “employee” mindset is dead. The mindset required in today’s world is one of adaptability and agility. The pace of change is relentless, and professionals must be ready to pivot, learn new skills, and embrace continuous evolution.
There is also a shift towards purpose-driven leadership, where the goal of business is not just to generate profits but also aligned with social and environmental impact.
As automation takes over routine tasks, innovation and creativity will become the differentiating factors for professionals.
Finally, the Fourth Industrial Revolution calls for a blend of global and local integration, requiring professionals to operate on a global stage while addressing local challenges.
Impact On India: India is at the forefront of digital transformation, with startups taking the lead and government initiatives like Digital India aiming to foster innovation across industries.
As India sprints to be a $1 Tn digital economy, this revolution presents an opportunity to leapfrog in new areas of growth like manufacturing, semiconductors, drones and electric vehicles.
But the proliferation of AI also poses challenges. Automation of routine tasks may lead to job displacement across sectors, creating a need for reskilling and upskilling of both white-collar and blue-collar jobs.
“India’s startup workforce will increase from 1.2 Mn today to 5 Mn by 2030.”
As the startup workforce swells, so does the skill gap. And this lack of high-calibre talent can easily derail India’s ambition to become a $1 Tn digital economy.
Fixing The “Employee Mindset” To Thrive In The Digital Economy
India’s journey through these industrial revolutions reflects a broader global trend – the continuous redefinition of what it means to be valuable in the workforce.
From the mechanical skills of the First Industrial Revolution to the leadership and digital awareness required in the Fourth, the trajectory is clear – those who adapt, innovate, and lead with purpose will be the ones who thrive in the future.
If we want to enable a new generation of leaders, India’s education system needs to step up.
However, the unfortunate reality is that India’s management institutions are struggling to keep pace with this rapid change, failing to eliminate the “employee” mindset and leaving a critical gap in preparing leaders for the fast-paced digital world.
This is why Inc42 has taken up the mission to create a new breed of leaders who will shape the future of India’s startup economy.
Introducing ManagementX – India’s first Startup Management Program, built for the audacious, the restless and the ones who want to challenge the status quo.
In just 6 months, ManagementX will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leadership mindset”, along with cutting-edge business, leadership, and digital skills that only the top 1% of startup leaders know.
ManagementX isn’t just a program, it’s a movement. This is where ambitious professionals come to break free from mediocrity and transform into high-impact startup leaders who will define India’s business landscape.
