One crore jobs are needed every year to increase the growth rate
New Delhi| India will need around one crore new jobs every year till FY 2029-30 to maintain a growth rate of 6.5 per cent annually. According to the Goldman Sachs report, setting up IT hubs in second and third tier cities and global capability centers in small cities will reduce the pressure on big cities. This will increase employment opportunities in underserved areas.
According to the report, fiscal incentives need to shift towards labour-intensive manufacturing sectors such as textiles, food processing and furniture. It can help in job creation for low to medium skill workers. The government’s production linked incentive (PLI) schemes have mainly benefited capital-intensive industries.
Along with this, Goldman Sachs has expressed the need for greater change in more labor-intensive sectors including textiles, shoes, toys and leather goods. This could combine India’s manufacturing sector with broader employment targets, as about 67 per cent of manufacturing jobs remain in labor-intensive sectors.
India has added about 19.6 crore jobs in the last two decades. Two thirds of these have been connected in the last 10 years. The construction sector remains the primary driver for employment in India. It accounts for about 13 per cent of total jobs. Investments in real estate and infrastructure have not only created jobs, but also raised income levels in low to middle families. The services sector accounts for about 34 per cent of total employment. It has expanded rapidly in recent times.
