India and its job market are again in headlines!
India & its Urgent Job Creation to Meet Workforce Demands by 2030
As per a report by Natixis SA, there is a need for the nation of 1.4 billion people to produce 115 million jobs by 2030 to meet its rising workforce.
The need for the job creation is dire for the nation to maintain current economic progress.
India is Asia’s 3rd largest economy and as per a senior economist at Natixis, Trinh Nguyen, the country is touted to be needing to produce 16.5 million jobs every year, up from 12.4 million in the previous decade.
Her study also emphasized the need for creation of 10.4 million jobs from the formal economy.
In her study, she said that “To achieve this herculean task, India’s growth engine needs to fire on all cylinders, from manufacturing to services in the next five years”.
India, is one of the fastest growing economies in the world and is expected to grow by more than 7% this year.
However, this might not be enough to keep up with the burgeoning population.
India, who is undergoing the general elections currently, wherein PM Narendra Modi is running for a 3rd term, is plagued with high youth unemployment.
Leveraging Manufacturing for Growth and Employment
As per the economist, despite the development of 112 million jobs over the last decade, only approximately 10 per cent of these roles are official.
As per the data by World bank, the current national labour force participation rate is 58%, which is much lower than that of other Asian nations.
Adding to the analysis, she said that the country has half of GDP coming from services industry and the same industry would be able to cater to such headcount as well as labour quality and hence India has to ride on the back of manufacturing sector and compete with companies and countries looking to diversify away from a China-centric supply chain.
She added that “The incoming administration needs to jump on the manufacturing train and capitalize on demographic and geopolitical tailwinds”.
Talking about the way forward, she said that “Even if the road forward is challenging, it is never too late to walk down the right path.”
