The Image Problem of Indian Manufacturing Sector: How Perception and Prestige is killing the Factory Pipeline

The Image Problem of Indian Manufacturing Sector: How Perception and Prestige is killing the Factory Pipeline

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1.Executive Summary

India aspires to be a global manufacturing hub, yet a less-discussed barrier holds back progress: the prestige deficit associated with factory work. Despite contributing ~17% to India’s GDP in FY 2024–25 ^[1], manufacturing jobs are seen as fallback options for those who “failed” to secure white-collar roles, demeaning the overall image of a factory job.

The interlinked forces driving this problem are:-

• Cultural stigma against blue-collar labour, reinforced by caste legacies and colonial occupational prestige. Caste-based occupational perceptions are one of the widespread yet hidden factors behind this image problem.

• Lack of economic standing for the majority of blue-collar and manual factory jobs.

• Exploitative and restrictive environments in many industrial clusters discourage youth and women from taking up factory jobs.

• Unwritten discrimination against potential women employees, especially married ones, as evident from Reuters investigation on Foxconn India^[24]

The consequences of this prestige deficit are severe: Rising skill shortages (a projected gap of 29 million workers by 2030 ^[2]), high attrition costs (57% in consumer durables & electronics^[28] & whooping 92% in textile industry ^[29]), and underutilization of a young labour force.

Global comparisons sharpen this contrast. In countries like Vietnam, Bangladesh, Germany & South Korea, factory work carries less stigma, leading to the availability of a required talent pool for factory jobs. In India, however, perceptions actively discourage youth from entering the factory pipeline.

Until India rebrands the dignity of labour, the full potential of its manufacturing sector will not be unlocked. Cultural reforms & mindset change must accompany economic reforms.  

2.Introduction

Today, India’s manufacturing sector stands at a crossroads. While the government’s Make in India initiative set a target of raising manufacturing to 25% of GDP, the share remains stagnant at ~17% in FY 2024–25 ^[1]. India’s manufacturing value-added share of its GDP is just 13%, dwarfed by China’s 25%, with Vietnam and Bangladesh outperforming India in export-driven manufacturing ^[3].

At the same time, India enjoys unique tailwinds to unlock its manufacturing potential.

• China+1 diversification: Global majors (Apple^[4],Foxconn^[5], Samsung^[6] ) are expanding their footprints in India to make diversified manufacturing options apart from China.

• Production-linked incentives (PLI): The PLI scheme of the Government of  India  has lead to actual investment of around ₹1.61 lakh crore which has generated production of around ₹14 lakh crore and ₹5.3 lakh crore worth in exports generated ^[7].

• Cluster strength: India has ensured the growth of specialized industrial clusters across the nation, with the notable ones being Hyderabad’s pharma hub, Tamil Nadu’s textile and auto belts, and Karnataka’s aerospace and electronics clusters ^[8].

However, there is a hidden and much more severe structural weakness that plagues India’s manufacturing sector, which is fragility of the labour pipeline caused by perception and prestige barriers. Multiple surveys have shown that youth overwhelmingly prefer government or IT jobs over manufacturing ^[9][10]. Most of the Indian population views shop-floor roles as “low-status”  and socially undignified ^[11]. This stigma, compounded by caste-based occupational legacies carried over unconsciously across generations, blocks India’s ability to attract, retain, and upskill workers at scale.

Unless India tackles this image problem of manufacturing roles and the deficit of dignity associated with it, Indian’s manufacturing sector will remain trapped in a cycle of underperformance & inefficiency despite policy incentives and global opportunity.

Figure 1 : Comparative Manufacturing Value Added (% of GDP) – India vs Various Countries (World Bank, 2024).^[4]

3.The Prestige Deficit of Factory Jobs

India’s middle class is a key source of workforce supply to its economy. However, it actively rejects factory-linked careers. Unlike in Germany or South Korea, where vocational paths are respected, Indian youth overwhelmingly aspire to white-collar or government jobs.

• The Lokniti–CSDS Youth Survey shows that over 65% of young Indians prefer government or IT/management jobs, while less than 15% consider manufacturing or vocational roles ^[12].

• The India Skills Report (2024) highlights that vocational training uptake remains weak, with ITIs enrolling only a fraction of eligible youth ^[13].

• Gig economy jobs (Eg: food delivery , app-based services) are often chosen over factory work due to the perceptions of greater autonomy and prestige, even if the pay is comparable or lower ^[14].

There are multiple cultural drivers behind this phenomenon. Some of them are :-

• Parental Influence: Parents & Families see the factory work as “dirty” or “menial”, and thus steer children away from factory jobs, encouraging paths like engineering, medicine, or civil services.

• Educational System: Our education curricula across the country valourize academic & white-collar careers, while vocational education remains underfunded and stigmatized ^[15][16].

• Peer Effects: Reinforced by media portrayals and the stories of successful young professionals, many young people equate “respectability” with office-based or IT-sector jobs ^[9].

Figure 2 :Job preferences of youth under the age 15-34 years old, Indian Express. ^[9]

Figure 3 : Preference of Indian Youth for Various Job Roles (NSDC-IIT Delhi Survey 2023)^[10] Note that the bar graphs indicate approximate numbers based on a survey sample size of 200,000.

This prestige deficit of factory jobs is directly impacting India’s ability to mobilize its demographic dividend. The middle class, which should be the key supplier to India’s factory pipeline, is instead locked in an aspirational mismatch that skews talent flows towards white-collar roles, leaving factories understaffed.

4.Why Manufacturing Work Lacks Dignity

This ‘Low-status’ label of factory work is a product of three intertwined legacies:-

1. Caste Legacies: Whether someone accepts it or not, but today in the 21^st century caste & caste-based legacies still drive the thinking & aspirations of common Indians, either consciously or unconsciously. For thousands of years, manual and industrial labour has historically been associated with the Backward class & Dalit communities. The occupation-based guilds & shrenis in ancient & medieval India are often characterized by made of a particular caste groups, and hereditary transfer of occupation further solidified these perceptions. Hence the son of a blacksmith became a blacksmith, while son of the banker became a banker.

   
   

   These hereditary caste perceptions still exist and associate labour-intensive factory and manufacturing work with backward castes. This legacy has also impacted the social composition of major manufacturing companies.  The data from PLFS shows that today SC/ST groups are overrepresented in low-wage shop-floor and casual labour roles, while leadership positions are dominated by the so-called “upper” castes ^[16][17][18].

   
   

   Thus it is understandable why the middle-class (who still carry the caste-based memories) do not want to take up the manual factory roles. Youths coming from forward-caste backgrounds might feel the manual roles below their dignity, while those from lower caste backgrounds want to move up the social perception ladder by targeting white-collar jobs, which were historically associated with the forward castes.

   
   

2. Colonial Impact:  Under the British rule, as the rulers aimed to create a loyal governing system, they encouraged & glorified the clerical and bureaucratic jobs (the typical Sarkari babu image was conceived), and ensured that this attracted the educated middle class by virtue of status and stability. This eventually led to a cultural hierarchy where “office work” is perceived as prestigious, while “factory work”  is perceived as inferior and got associated with less education, lower status and instability ^[18].

   
   

3. Economic Reinforcement: The caste bias & colonial impact ultimately enforced an economic hierarchy, where manual factory work got associated with lower wages, poor working conditions, and limited mobility within factories. This again reinforced the social perception of these jobs as the last fallback option ^[16].

   
   

   That India’s manufacturing sector reflects the occupational hierarchies of society itself has been proved by multiple studies. The PLFS (2023–24) study says that SC/ST groups are overrepresented in casual and low-wage factory roles, while “Others” dominate formal and supervisory categories ^[15]. Academic works done by Thorat, Jodhka & Newman indicates that  Caste discrimination continues in recruitment, promotions, and job allocation, particularly in labour-intensive industries ^{[11][17][18].}

   While policy and technology have modernized factories, caste-linked segregation persists both on the shop floor and in boardrooms.

Box : Case Caste Hierarchy in Tiruppur Textile Cluster^[19]

Research by De Neve and Carswell shows that despite the claims of the workers that “Owners see the skill, not caste”, the better jobs often tend to go to the non-Dalits. Whilst Arunthathiyars (the lowest ranking Dalit group) from the villages surrounding Tiruppur have been the last to enter the industry and remain predominantly in the least attractive jobs.

Additionally, in villages with powerlooms, Dalits are often bonded to powerloom employers through debt and remain excluded from Tiruppur garment jobs.

Figure 4 : Data snapshots of caste-wise distribution across sectors & establishments ^[20][21] \

5.Other Perception Factors:

In addition to the caste & occupation-driven biases towards factory work, there are other factors that intensify the stigma of factory work.

·      Restrictive & exploitative environment – Many manufacturing units & factories often impose multiple restrictions on employees, like restrictions on movements, strict food and bathroom breaks, no access to phones. Many times the blue-collar workers have to face constant harassments & threats of wage cuts, thereby increasing the financial risk and making such jobs more unstable.

Perception of women in factory work – Although initiatives like 100% women factory by Ola and positive steps by other industrial players have helped breach the stigma of women working in factories, in reality, women workers, especially young unmarried women, still face lots of social & cultural stigma. The patriarchal elements of society often misalign their economic freedom & readiness to do physical work with their femininity & sometimes with their character itself. This attitude often discourages many potential young women from joining the factory workforce. And when skilled women are ready to join, they are often discriminated during hiring, as evident from the case of Foxconn India.^[24]

Case Box : New forms of bonded labour

In Tamil Nadu’s textile belt, adolescent Dalit girls were recruited under the “Sumangali Scheme,” lured with the promise of a lump-sum payment for marriage expenses. Reports by ICN show that these girls worked in bonded-like conditions with little mobility ^[22]. The scheme reinforced both caste (targeting Dalit households) and gendered hierarchies, making factory work synonymous with exploitation rather than opportunity.

Case Box : Harassment of Garment workers & lack of mobility

Interviews of multiple garment workers in Karnataka Apparel industry by Cividep ^[23] revealed harassment and lack of upward mobility as key reasons why they discourage their children from joining factories. The workers do not want their children to suffer as they did, thus they aspire better paying whit-collar jobs for their children. This contributes to the resource pipeline collapse, as factory work is framed as a dead-end.

Case Box : Unspoken discrimination against hiring women in Foxconn assembly lines

Multiple reports in media have highlighted that Foxconn, a major manufacturer of Apple devices, has systematically excluded married women from job at its iPhone assembly plant in Sriperumbudur, Tamil Nadu.^[24] A former HR Executive at Foxconn, India has alleged that verbal directions have been given to the Indian hiring agencies by the company in this regard, since the company does not hire married women because “risk factors increase when you hire married women.” as mentioned the ex-HR executive. While this matter is under investigation by labour ministries & NHRC, it showcases deep cultural biases against women.^[25]

6.Global Comparisons: Learning from Competitor Nations

India is not alone in facing challenges in mobilizing its workforce for manufacturing. But what sets it apart from its competitors is the intensity of cultural stigma tied to factory jobs.

• In Vietnam,  Manufacturing contributes ~25% of GDP ^[3]. Vocational schools are integrated into the education pipeline, and social stigma is limited compared to India. Factory jobs are often stepping-stones into middle-class life.

• Similarly in Bangladesh, manufacturing (mainly garments) contributes ~21% of GDP ^[4]. While labour conditions can be exploitative, the industry is not extensively caste-structured as India. Stigma is weaker because factory jobs are tied to economic mobility, particularly for women.

• In Germany, vocational education is a prestigious pathway. The dual system combines apprenticeships with academic instruction, backed by industry. Campaigns such as “Made in Germany” have actively projected industrial labour as nation-building ^[26].

• In South Korea during the 1960s–80s period, state-led industrialization rebranded factory work as patriotic. Today, South Korea invests 4.8% of GDP in R&D, and manufacturing is respected as a high-skill, innovation-driven career ^[27].

Country	%Share of manufacturing in  GDP[3]	Cultural Perception of Factory Jobs	Notable Features
India	~13%	Low prestige, caste stigma, fallback option	Weak vocational system
Vietnam	~25%	Moderate prestige, path to middle class	Vocational integration
Bangladesh	~21%	Low stigma, especially for women in garment industry	Export-oriented, female-heavy
Germany	~19%	High prestige, nation-building pride	Dual apprenticeship system
S. Korea	~25%	High prestige, linked to innovation	Strong R&D, industrial patriotism

Figure 5 : A Comparison of India with other countries in terms of manufacturing Contribution & Cultural Perception

India’s challenge is not just economic but cultural. Unlike Vietnam or Bangladesh, where factory jobs are economic ladders, or Germany/South Korea, where vocational prestige is institutionalized, India treats factory work as “failure.” Unless this prestige gap is closed, policy tools like PLI and cluster promotion will underdeliver.

7.Impact on Sector Growth and Workforce Pipeline

The prestige deficit in India’s manufacturing sector has led to measurable economic and workforce losses.

1. Skill Shortages: India is projected to face a 29 million worker shortfall in manufacturing by 2030, driven by weak vocational uptake and stigma around factory roles ^[2].

2. High Attrition: Indian manufacturing industries are suffering from a high level of employee attrition rates, ranging from ~57% in consumer durables & electronics industry^[28] to a whooping 92% in the textiles industry^[29] , which are both highly labour-intensive industries.

3. Female Workforce Exclusion: Only 19% of women participate in the labour force overall, and within manufacturing, women are clustered in low-value roles (textiles, garments) ^[15]. Exclusion from higher-value segments reduces sectoral innovation and inclusivity, which means that the industries will not be able to tap into 50% of potential workforce.

These factors directly impact on the macroeconomic indicators of the economy, leading to a drag on productivity & growth.

• GDP Contribution: Despite incentives, manufacturing’s share has remained stagnant at ~17% of GDP (2025), compared to China’s 25% ^[3].

• Growth Volatility: Manufacturing growth slowed to 1.4% in FY 2023–24, down from 4.7% in the previous year ^[8]. Skill mismatches and high churn were key contributors.

• Innovation Gap: India invests only 0.7% of GDP in R&D, compared to South Korea (4.8%) and Germany (3.1%) ^[26][27]. This reflects not just capital constraints, but also weak prestige pipelines discouraging talent from entering technical trades. Had the R&D investment been more, it could have attracted more talent and could have acted as a supportive technical trade. 

Figure 6 : Diagram showcasing how cultural stigma leads to productivity drag.

The economic cost of perception is real. Skill shortages, attrition, and underutilization of women and marginalized groups translate into slower GDP growth and weaker global competitiveness. Without addressing the dignity of labour deficit, India’s manufacturing will remain policy-rich but talent-poor.

8.Strategic Recommendations

The image problem of Indian manufacturing can be addressed by taking action at three levels: narrative change, institutional reform, and industry practice. The challenge is cultural, but the solutions must be policy-anchored and industry-driven.

1.Reframe the perception Narrative, Promote Dignity of Labour.

It is crucial that the low-class, low-caste perception for manual factory work is addressed. Factory work should be branded as a desirable skilled, modern & aspirational work. Both government & private players can contribute a lot in changing this perception.

Some examples that can be implemented are :-

·      Showcase the success stories of workers rising from shop-floor to supervisory/technical roles.

·      Partner with traditional & social media to highlight the factory heroes.

·      Integrate “factory pride” message into pop culture & school curricula.

2.Fix Institutional & social biases based on caste, class & gender

When it comes to addressing caste-rooted old perceptions, it is crucial that alongwith affirmative action policies, negative discrimination policies are also used to fix the centuries-old biases, only then we can break the opaque hierarchies where upper castes dominate leadership while marginalized groups are stuck in low-value roles. Stringent & effective DEI (Diversity Equity & Inclusivity) mandates with transparency are the need. A few such mandate examples are :-

·      Industry regulatory agencies (SEBI, MCA etc.) should mandate companies integrate workforce diversity metrics into their disclosures. Companies with diverse leadership pipelines should be rewarded via PLI bonuses, while those not complying should be penalized.

·      Manufacturing companies with >500 employees must have at least 30% representation of SC/ST/OBC combined and 25% women representation at middle management and above levels within 3 years.

·      Establish mandatory skills upgrade programs funded by companies to facilitate career progression of SC/ST & female employees from operational to managerial roles.

·      Implement zero-tolerance policies for caste-based discrimination with anonymous reporting mechanisms and dedicated ombudsperson roles.

3.Redesign Workplace practices

In order to make the manufacturing jobs attractive to the youth and to reduce attrition rates, the existing work policies needs update. Some potential actions that can be implemented are :-

·      Invest in construction of better facilities like canteen, rest areas for both men & women.

·      Ensure that occupational safety measures are thoroughly implemented in the factory & are regularly revised after taking feedback from all employees.

·      Provide perks/bonuses to shop-floor employees during a good profitable quarter, as well as during regular festivals.

4. Ensure right to work

Taking cues from the MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), a minimum working days guarantee and with minimum income should be provided for blue-collar shop floor technicians & contractual employees with both skilled and unskilled requirements.  This will address the bias against shop-floor level technical roles which due to their inherent temporary nature often are passed on.

5.Providing localized solution for clusters

To address the localized biases in different sectors & geographies (eg. Tamil Nadu textile sector), localized solutions need to be in place. These can include :-

·      Fair work councils in every block and district in collaboration with industry associations and state governments, to ensure that caste-based discriminations do not take place.

. Labour codes to be regularized and implemented in these clusters to ensure inclusionary practices in recruitment & apprenticeships.

6.Strengthening Vocational Pathways

The perception of skill-based vocational schools and Industrial Training Institutes (ITIs) should be shifted from being the option of last resort to first choice as a modern skills gateway. Some recommended measures are :-

·      Glamourize the ITI skills by promotion on social media (Eg: Videos like ‘How to make a smartphone from scratch’)

·      Include & improve factory internships for every coursework, and ensure that the factory projects are actually impactful. Here inspiration can be taken from Germany’s Dual training modules.

·      If the work done during internship is impressive, encourage factory owners to offer pre-placement offers to deserving candidates.

·      Scholarship & stipends should be provided to attract youth towards vocational pathways.

It must be noted that India’s factory pipeline problem cannot be solved by incentives alone. It requires rebranding labour, diversifying leadership, and reshaping workplaces. Without cultural transformation, India risks squandering its demographic dividend.

9.Conclusion

India’s ambition to emerge as a global manufacturing hub faces a hidden but fundamental barrier, the image problem of factory work. Despite strong policy levers of PLI schemes, cluster development, global supply chain shifts etc., this prestige deficit surrounding shop-floor roles continues to choke the labour pipeline.

Youth aspirations are clealy skewed towards white-collar and government jobs.  Caste and social hierarchies have reproduce themselves inside factories, relegating marginalized groups to low-value work and excluding them from leadership. Attrition and skill shortages are directly eroding productivity, leaving India at risk of lagging behind peers like Vietnam and Bangladesh,who face fewer cultural barriers.

In both Germany and South Korea, Thus it is critical that  the prestige for manufacturing jobs must be cultivated, not assumed. Just like in Germany and Soth Korea, factory work need to be reframed as nation-building, technologically advanced, and socially respected.

Economic reforms without cultural reforms will not deliver results. Unless the dignity of labour is restored, India will remain policy-rich but talent-poor in manufacturing.The focus should not be just to build factories, but to build respect for the hands that power them.

Meet The Thought Leader

Karan Patel is a mentor at GGI an undergraduate from IIT Madras. He is currently employed with Teach mint, an ed-tech start-up in their strategy team. Prior to Teach mint, he worked at Dalberg Advisors as an analyst where he worked with multi-laterals and international foundations on gender, education and energy sectors. He has also interned in MIT Sloan, Qualcomm and IIM Ahmedabad giving him a plethora of experience in the corporate and academic world. He also started his own venture in hyperlocal air-quality monitoring. Karan is an avid sport-person and masala chai fanatic.

Meet The Authors (GGI Fellows)

Israrul Haque is an accomplished Chemical Engineer in the pharmaceutical sector with more than over 6 years of experience. An alumnus of IIT Kharagpur, he champions scientific temper and drives India’s progress through out-of-the-box entrepreneurial innovation and inclusive manufacturing. A thoughtful social commentator and writer by passion, he advocates strongly for progressive human values, including women's and LGBTQ+ rights, and universal brotherhood. He has also published a collection of short poems dealing with themes of humanity, feminism, and environmentalism.

Krishna Gopal Mohapatra is a Supply Chain and Customer Experience Manager at Ajio, bringing extensive experience in warehouse operations and manufacturing units from reputed organizations such as Myntra, Flipkart, and Nestlé India Ltd. A firm believer in continuous learning and professional growth, he aims to leverage this platform to transition into the consulting space. Guided by the philosophy that failure is simply another opportunity to achieve better results, Krishna approaches every challenge with resilience and a drive for excellence.

Shalini Bhati serves as the Project Manager at HeatMax Projects Pvt. Ltd., a leading manufacturing firm specializing in industrial boilers, chimneys, pressure vessels, and a wide range of industrial products. She upholds the belief that true success is achieved through consistent hard work and pursuing goals in the right direction.

If you are interested in applying to GGI's Impact Fellowship program, you can access our application link here.

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