Job Creation and Demographic Dividend in India
India, the most populous and one of the youngest nations, is poised to add approximately 133 million individuals to its working-age population over the next 25 years. This represents 18% of the global workforce increase. However, India's demographic dividend window is narrow, with the working-age population expected to peak by 2043.
Importance of Employment Generation
- Employment generation is crucial for:
- Equity and inclusion.
- Reducing poverty and socio-economic disparities.
- Ensuring even distribution of growth benefits.
- In a consumption-driven economy like India, quality jobs accelerate and stabilize growth.
Challenges and Policy Recommendations
- Need for a unified national framework for employment and livelihoods despite various government initiatives.
- Development of an Integrated National Employment Policy:
- Consolidate existing schemes.
- Define time-bound goals and focus on high-employment-potential sectors.
- Address labour market frictions and regional disparities.
- Integrate emerging technologies in skilling programs.
Sectoral Focus and Initiatives
- Promote labour-intensive sectors such as textiles, tourism, agro-processing, real estate, and healthcare.
- Support the Micro, Small, and Medium Enterprises (MSME) sector, employing over 25 crore people, with comprehensive strategies.
- Expand the gig economy, which employs 80 lakh to 1.8 crore workers, with potential growth to 9 crore by 2030.
Enhancing Workforce Participation
- Improve female labor force participation with incentives and societal norm changes.
- Promote regionally balanced employment through targeted interventions.
Data and Implementation
- Ensure high-quality, real-time employment data through a dedicated task force.
- Timely implementation of Labour Codes with clear transition guidelines.
With coordinated reforms and targeted investments, India can transform its employment landscape, unlocking its demographic dividend and achieving equitable, resilient, and sustained growth by 2047.
