Indian veterans face a combination of structural, cultural, and economic factors that make transitioning into the corporate world more difficult than for their counterparts in developed countries. However, with the right support mechanisms and corporate engagement, this situation can improve over time.
India’s relatively underdeveloped manufacturing sector is indeed a significant missing piece of the puzzle that affects not just military veterans but the broader job market as well. The manufacturing sector plays a vital role in creating large-scale employment, particularly for workers with technical skills and experience in operations, logistics, and management—areas where military veterans typically excel.
Here’s how the underdevelopment of the manufacturing sector impacts veterans, the economy, and job creation:
1. Manufacturing as a Key Driver of Employment
- Low Contribution to Employment: In developed economies, manufacturing contributes significantly to employment. For instance, in countries like China and Germany, the manufacturing sector employs a large portion of the workforce. However, in India, manufacturing contributes less than 20% of GDP and an even smaller percentage to employment compared to services and agriculture. This limits the overall number of available jobs, particularly those suited to veterans who often have logistical, engineering, or operational skills from their military training.
- Job Creation in Allied Industries: A robust manufacturing sector often creates jobs in allied industries like logistics, supply chain management, and infrastructure development—fields where veterans have significant expertise. The absence of a strong manufacturing backbone reduces opportunities for veterans who would naturally transition into such roles.
2. Military Veterans and Manufacturing Synergy
- Relevant Skills for Manufacturing: Veterans are often highly skilled in areas like project management, operations, technical training, and workforce management—skills that align well with the needs of the manufacturing sector. In countries with strong manufacturing industries, veterans frequently transition into roles like plant managers, quality assurance specialists, or operations supervisors. The lack of manufacturing opportunities in India limits veterans’ ability to leverage their skills in this sector.
- Leadership in Industrial Settings: The disciplined, process-oriented mindset of military personnel is a perfect fit for leadership roles in factories, assembly lines, and logistics operations. In a more developed manufacturing economy, veterans could occupy mid-to-senior management roles, but the scarcity of large-scale organized manufacturing in India means these opportunities are sparse.
3. India’s Skewed Economic Focus on Services
- Over-Reliance on Services Sector: India’s economic growth has been heavily driven by the services sector, particularly IT and financial services. These sectors tend to demand specific qualifications like engineering degrees, coding skills, or financial certifications, which are not typically part of the military’s training programs. Veterans often struggle to enter the services sector unless they undergo extensive reskilling.
- Missed Opportunities in Labor-Intensive Sectors: In contrast, a strong manufacturing base could absorb not only veterans but also a large portion of India’s semi-skilled labour force, addressing widespread unemployment issues. Manufacturing provides opportunities for on-the-job training and skill development, which could benefit military personnel with operational and technical backgrounds.
4. The Small Pie Effect
- Limited Pool of Corporate Jobs: The organized corporate sector in India is relatively small, especially compared to the size of the population. With the services sector dominating the economy and limited opportunities in manufacturing, there is fierce competition for a small pool of jobs. Veterans, competing with civilians who have specialized degrees and experience in industries like IT and finance, often find themselves at a disadvantage.
- Competing for a "Small Pie": The limited number of corporate jobs in non-technical fields leaves veterans, who typically have non-technical but highly valuable skills, vying for the same few positions as other skilled candidates. In a more diverse economy with robust manufacturing, veterans could find many more opportunities suited to their skills, thus reducing the competition for the same jobs.
5. The "Make in India" Challenge
- "Make in India" Initiative: The Indian government launched the "Make in India" initiative to boost domestic manufacturing and create jobs. However, the results have been slower than expected due to a range of challenges, including bureaucratic hurdles, inadequate infrastructure, and global competition. This lag in manufacturing growth means that job creation has not kept pace with the needs of a growing workforce, including military veterans looking for post-retirement career opportunities.
- Infrastructure and Policy Gaps: Even as manufacturing grows under initiatives like "Make in India," infrastructure bottlenecks, regulatory issues, and a lack of skilled labour in key industrial areas have slowed progress. These are areas where veterans, with their experience in logistics, infrastructure development, and large-scale project management, could contribute, but the slow pace of manufacturing growth limits these opportunities.
6. Veterans as Catalysts for Manufacturing
- Potential Role of Veterans in Revitalizing Manufacturing: Veterans could play a significant role in the revival of India’s manufacturing sector. With their leadership skills, operational expertise, and ability to work in challenging environments, veterans could help drive efficiency and productivity in factories and industrial operations. However, the slow pace of growth in this sector means that veterans are not being fully utilized.
- Integrating Veterans into "Make in India": Government and industry could work together to create specific pathways for veterans to enter the manufacturing workforce, through programs that target veterans for roles in operations, management, and technical oversight in manufacturing plants. This would not only create jobs for veterans but also boost the efficiency and competitiveness of the manufacturing sector.
7. Multiplier Effect of Manufacturing on the Economy
- Manufacturing as a Job Multiplier: In economies like Germany and Japan, manufacturing is not just a direct job creator but also has a multiplier effect, generating employment in areas like supply chain, transportation, and services. A stronger manufacturing base in India would create more job opportunities across the board, making it easier for veterans to transition into civilian roles that suit their skill sets.
- Revitalizing the Rural Economy: Many veterans retire to rural or semi-urban areas, where job opportunities are even scarcer. A thriving manufacturing sector could help decentralize job creation and bring opportunities to these regions, helping veterans find meaningful work close to home.
8. Structural Reforms to Encourage Manufacturing Growth
- Policy Reforms for Veterans in Manufacturing: The government could introduce policies that specifically incentivize the hiring of veterans in manufacturing, similar to how many countries offer incentives to companies that employ veterans. This could be part of a broader manufacturing growth strategy, helping both the sector and veterans.
- Skill Development and Transition Programs: Manufacturing firms could collaborate with the military to create programs that help veterans transition into civilian manufacturing roles. For example, veterans could be given specialized training in industrial operations or supply chain management, allowing them to seamlessly enter these industries post-retirement.
The Need for Manufacturing as the Missing Piece
India’s economy would benefit greatly from a stronger, more organized manufacturing sector—not just for veterans, but for the overall labour market. Manufacturing is a high-employment, skill-absorption sector that has the potential to create jobs on a massive scale, providing opportunities for veterans who bring valuable skills to the table. Without significant growth in manufacturing, both veterans and the broader workforce are left competing for a relatively small slice of the employment pie, contributing to higher unemployment and underemployment.
To address this, India needs to:
- Accelerate efforts to grow the manufacturing sector.
- Create veteran-specific hiring initiatives in manufacturing.
- Ensure that skill development and transition programs align veterans’ strengths with the needs of a growing industrial economy.
Veterans are part of the solution, but without a robust manufacturing sector, the opportunities for them to contribute meaningfully to India’s economy will remain limited.
