India's Workforce Challenge: Generating 78.5 Lakh Jobs Annually Until 2030

The Indian economy must generate nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to support the rising workforce, according to the 2023-24 Economic Survey. The private sector plays a crucial role in job creation. The survey suggests that economic growth should also focus on generating livelihoods and promoting gender inclusivity.

The Indian economy faces the challenge of creating nearly 78.5 lakh jobs annually in the non-farm sector until 2030 to support its growing workforce, according to the 2023-24 Economic Survey tabled in Parliament on Monday.

The Survey emphasizes the significant role of the private sector in employment creation, noting that ''In more than one respect, the action lies with the private sector. In terms of financial performance, the corporate sector has never had it so good.'' It highlights that, between FY20 and FY23, the profit before taxes of over 33,000 companies nearly quadrupled, and suggests that companies must boost hiring and worker compensation as nominal GDP rose by 9.6% y-o-y to Rs 295-lakh crore.

To meet the annual job demand, the Survey recommends enhancing existing schemes like PLI, MITRA Textile scheme, and MUDRA. Additionally, it suggests facilitating job creation for workers transitioning from agriculture, investing in AI research for shared prosperity, and implementing more flexible labor laws to promote gender inclusivity and stimulate industrial investment.

(With inputs from agencies.)