e-Commerce Export Hubs to Generate Over 2.25 Lakh New Jobs: Report The government's plan to establish 50 e-Commerce export hubs aims to create 2.25-2.75 lakh additional jobs, as per report from TeamLease
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The logistics sector is expected to see a 50 per cent year-over-year (YoY) increase in apprenticeship headcount over the next three years. The Indian government's initiative to establish 50 e-Commerce export hubs is expected to generate 2.25 - 2.75 lakh 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 per cent compound annual growth rate (CAGR), as per report by TeamLease.
The post covid-19 pandemic saw the rise of e-Commerce in India. e-Commerce offers consumers unprecedented access to a wide variety of products from the comfort of their homes. As Internet penetration deepens and smartphone usage becomes ubiquitous, Indian consumers are increasingly turning to e-Commerce platforms for their needs. This has created a huge employment opportunity for the country. The report highlights 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.
"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 established 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 per cent year-on-year increase in apprentices over the next three years. Government programs such as NATS, PMKVY and the Skill India Mission emphasise 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," said Ramesh Alluri Reddy, CEO of TeamLease Degree Apprenticeship.
The logistics industry in India faces significant challenges due to its largely unorganised nature, with only 10 per cent of the sector consisting of formal players and a mere 4.5 per cent of the workforce being skilled. This lack of formalisation is a major barrier to the industry's potential for job creation, especially as the demand for skilled labour continues to rise. The shortage of skilled workers, particularly in critical areas such as advanced equipment handling and managing complex international consignments, hampers the sector's ability to fully leverage new technologies.
Moreover, only 41 per cent of offline vendors are engaging in digital upskilling or creating new employment opportunities, which further restricts the industry's growth. 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.
