India should prepare itself for a dynamic employment scenario
₹11.1 trillion, up more than 11% from the ₹10 trillion budgeted for 2023-24 (and up 17% from this year’s revised budget estimate). The finance minister’s speech laid emphasis on the substantial multiplier effect of capex on both economic growth and employment generation. Employment is the link between economic growth and higher standards of living.
As per the latest Periodic Labour Force Survey’s quarterly data, India’s urban unemployment rate for individuals aged 15 and above decreased from 7.2% to 6.5% between October-December 2022 and the corresponding quarter of 2023. This is indeed an encouraging trend. However, in the coming years, New Delhi’s focus on creating robust employment opportunities should factor in multiple aspects of the country’s employment challenge, beyond just the quantity aspect.
While increasing the sheer number of jobs available is important, it’s equally vital to ensure that these jobs are meaningful and productive. Simply put, it’s not just about creating more jobs, but about fostering opportunities that truly contribute to the well-being and economic advancement of people. As of November 2023, India’s production-linked incentive (PLI) schemes had attracted investments exceeding ₹1 trillion, which has reportedly led to production/sales value of over ₹8.6 trillion and the creation of more than 678,000 lakh jobs, both directly and indirectly.
There is vast scope to expand India’s scale of job creation to further accommodate the country’s expanding pool of working-age youth. Beyond this increase in scale, what must be emphasized is the optimal utilization of human capital to avoid underemployment and disguised unemployment. The Economic Survey (2022-23) highlights an increase in the share of
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