We focus on the manufacturing and services sectors, particularly the more labour intensive sub-sectors therein, as key drivers of job creation in India. We first highlight constraints on both the demand and supply sides of the labour market that hinder progress towards attaining the employment goals for Viksit Bharat. Next, we project the number of jobs that can be created through output growth in labour intensive manufacturing and services sub-sectors between 2025 and 2030, using different growth scenarios. The results suggest that inter-sectoral linkages can have a multiplicative effect on employment in the aggregate economy. On the supply side, we show that increasing the share of skilled work force by 12 percentage points through investment in formal skilling could lead to more than a 13% increase in employment in the labour intensive sectors by 2030. We conclude with policy prescriptions to boost aggregate demand and enhance workforce skilling.
Publication
“Pathways to Jobs”
- forthcoming India Policy Forum
- # Others
- Farzana Afridi
- , Arjita Chandna
- , Janani Rangan
- , Jayanta Talukder