A Glimpse Into India’s Future

Towers Watson-CII Industry Opinions Study

April 2015

Towers Watson-CII Industry Opinions Study 3

Contents

Preface 4

At a glance 5

Industry performance and key drivers 5

Transformational workforce trends 6

Inadequate supply of skilled workers 6

Attraction and retention challenges 7

Rising workforce costs 7

Slow labour reforms 9

Jobs outlook 10

Rising wage gap between high and low earners 10

The way forward — increasing investment in

human capital 12

About the research 13

A Glimpse Into India’s Future

Towers Watson-CII Industry Opinions Study

4 towerswatson.com

Preface

Harbingers of economic recovery and a series of

bold reforms are giving industry leaders in India

renewed con!dence in the future. This study,

which was undertaken by Towers Watson with the

support of the Confederation of Indian Industry (CII),

sets out to capture prevailing sentiments among

business leaders in India. The study focuses on

what industry experts view as the key drivers of

growth, along with likely bumps in the road ahead.

India’s workforce plays a pivotal role in the country’s

economic future, and the study solicits these

experts’ views on rising workforce costs, shortages

of skilled workers, investments in workforce

management, wages and inequality — trends that

will shape the future of virtually every industry.

The !ndings suggest that a favourable business

environment and talented workforce are the most

critical drivers of growth. Industry experts fear that

rising workforce costs, inadequate infrastructure,

an uncertain business environment and a scarcity

of key talent might slow growth over the next !ve

years. Wages — along with wage inequality —

and job creation are expected to pick up steam,

while attracting and retaining key talent remains a

perennial challenge.

Other seismic shifts also loom on the horizon.

Industry leaders need to assess their companies’

current performance and determine how to

leverage key drivers of growth. Employers can

capitalize on India’s advantageous demographic

dividend by training and developing tomorrow’s

workforce, encouraging innovation and the use

of new technology, understanding the changing

consumer landscape and working with the

government to create favourable conditions for

sustainable growth.

Our sincere thanks go to the more than 310

industry experts who shared their opinions with

us. We hope these !ndings will help bring critical

issues to the fore, and foster productive reforms

and effective business practices that create more

opportunities for growth.

Chandrajit Banerjee

Director General

CII

Vivek Nath

Managing Director

Towers Watson India

The information in this publication is of general interest and guidance.

Action should not be taken on the basis of any article without seeking

speci!c advice.

Copyright © 2015 Towers Watson. All rights reserved.

TW-RIC-2015-0002. April 2015.

towerswatson.com

About Towers Watson

Towers Watson is a leading global professional services

company that helps organisations improve performance

through effective people, risk and !nancial management.

With 15,000 associates around the world, we offer

consulting, technology and solutions in the areas of bene!ts,

talent management, rewards, and risk and capital

management. Learn more at towerswatson.com

/company/towerswatson @towerswatson /towerswatson

About CII

CII is a nongovernmental, not for pro!t, industry-led and

industry-managed organization, playing a proactive role in

India’s development process. Founded over 113 years ago, it

is India’s premier business association, with a direct

membership of over 7,500 organisations from the private and

public sectors, including small and medium enterprises

(SMEs) and multinational companies (MNCs), and an indirect

membership of over 83,000 companies from around 380

national and regional sectoral associations.