Virtual Reality Meets Sustainability: Empowering Workers Through Hands-On Training

India’s micro, small and medium enterprise (MSME) sector stands at a crossroads as industries rapidly adopt advanced technologies, like robotics and automation, while also transitioning to cleaner fuels and technologies to cut greenhouse gas emissions.

MSMEs, which account for 35% of the country’s manufacturing output, are a fundamental part of this transition. In the auto industry, original equipment manufacturers (OEMs) are already encouraging their supply chain partners, particularly tier-1 and tier-2 suppliers, to adopt green manufacturing practices. These include energy efficiency, lean manufacturing and responsible waste management. To remain competitive and become preferred partners in low-carbon growth, MSMEs must invest in sustainable practices like upgrading to energy-efficient equipment and adhering to environmental, social and governance (ESG) parameters.

MSMEs and the Low Carbon Skilling Challenge

MSMEs face distinct challenges that must be addressed to ensure a just and equitable transition for both businesses and workers. A critical requirement is the skilling of workers in low carbon technologies and new green opportunities. For example, as the auto industry shifts from internal combustion engine (ICE) components, the demand for traditional foundry operations will decline. The shift to EV manufacturing requires workers to have precision skills like machining high-grade materials and an ability to adapt to new design parameters.

Ramesh Varadhan, Plant Head at Microtech Engineers in Chennai, aptly sums up the current challenges in the ecosystem, “Our shop floor workers mostly learn on the job without formal industrial training. While we have implemented robotics, further training is essential to fully optimize its use.”

Barriers to Traditional Training

Despite the growing need for upskilling, conventional training is not always designed to suit the specific needs of MSME workers.

Many workers, employed on short-term contracts, lack formal higher education and industrial training. According to the Periodic Labour Force Survey, 71% of workers in non-agricultural sectors lack formal contracts. Job insecurity, demanding work schedules and limited opportunities for career advancement discourage workers from learning new techniques.

Certification courses are often unsuitable for workers juggling 12-hour shifts. For example, a Computer Numeric Controlled (CNC) machinist course requires 510 hours of classroom training — a commitment that many workers cannot afford. Furthermore, these programs rarely include green skills such as energy efficiency or process optimization, which are crucial for meeting customer demands for low-carbon manufacturing.

Finally, high worker turnover and slim profit margins deter MSME owners from investing in lengthy training programs. It also makes them wary of relieving their workers to go and attend external training.

Need for Innovation in Training Programs

Innovative training methods, including digital and interactive tools like virtual reality (VR) can help address some of these challenges by making it easier for workers to access upskilling opportunities. As part of its Resilient Inclusive and Sustainable Enterprise (RISE) initiative, WRI India helped organize a VR-based simulation training session in the Coimbatore auto cluster in October 2024.

The VR tool simulation offered a flexible and hands-on method to train workers with minimal disruption of daily operations. It demonstrated how adjusting technical parameters like flow, pressure and frequency in industrial equipment can lead to significant energy savings. The engaging training exercise raised awareness about standard energy-efficient practices and allowed workers to enhance their skills in a digital interactive environment.

The VR-based training offered experiential learning tailored to specific job roles and requirements. It also enabled workers to gain technical knowledge and insights into efficient equipment operations. The program simulated real-world challenges, providing practical experience without the added cost of extensive infrastructure.

Over the course of a single day, participants engaged with bite-sized modules that covered energy conservation in key industrial utilities like motors, fans, pumps and air compressors. This training improved their technical knowledge and helped them adopt standard operating practices that can contribute to their organizations' sustainability goals.

Mr. Varadhan concluded, “Equipping workers with digital skills can significantly reduce cycle time (time taken to complete a production process), minimize waste and enhance product quality, driving greater efficiency and digitalization within MSME operations. Digital training tools like VR technology can play a key role in achieving this.”

Scaling the Impact

To replicate the success of such initiatives, collaboration between industrial associations, academic institutions, OEMs, and government and skilling agencies is essential. With industries evolving rapidly, training curricula must be tailored to sectoral needs and integrate green skills and advanced technologies. It is also essential to ensure that the trainings are accessible to workers with limited formal education.

VR-based training sessions can be held during lean manufacturing seasons or off-hours at MSME premises to ensure easy access for workers. Given the thin profit margins of MSMEs, financial incentives such as subsidies or low-interest loans can help these enterprises implement training programs and motivate workers to upskill.

India is at a pivotal moment in its industrial evolution and low-carbon transition. By embracing flexible and scalable solutions like VR-based training, we can ensure that MSME workers are equipped to thrive in a changing industrial landscape.