India Must Generate 11.5 Crore Jobs by 2030

  • 21 May 2024

India faces the challenge of creating 11.5 crore jobs by 2030 to accommodate its expanding workforce, requiring a focus on services and manufacturing, according to a recent study.

Key Points

  • Rapid Job Growth Needed: India needs to create 1.65 crore jobs annually, with 1.04 crore from the formal sector, to meet workforce demands.
  • Economic Growth Imperative: To achieve this, the economy must excel across sectors, from manufacturing to services.
  • Youth Unemployment Challenge: High youth unemployment poses a significant challenge for Prime Minister Narendra Modi.
  • Formal Job Sector: Despite generating 11.2 crore jobs in the last decade, only about 10% are formal positions.
  • Low Labor Force Participation: India's labor force participation rate is at 58%, lower than its Asian peers, per the World Bank.
  • Services Sector Limitations: The services sector, comprising over half of GDP, has limited potential in terms of labor quality and quantity.
  • Emphasis on Manufacturing: India can leverage the manufacturing sector's potential to attract firms diversifying from China-centric supply chains.