India must generate 115 million (11.5 crore) jobs by 2030 to accommodate the increasing workforce. A study indicates that the country must enhance its services and manufacturing sectors to sustain economic growth. According to Trinh Nguyen, a senior economist at Natixis SA, India will need to create 16.5 million (1 crore 65 lakh) jobs annually, a significant increase from the previous decade's 12.4 million (1 crore 24 lakh) jobs.
Approximately 10.4 million of these jobs should come from the formal sector. To meet this ambitious goal, India must boost all sectors, from manufacturing to services, within the next five years. Despite India's projected economic growth of over 7% this year, job creation remains a challenge due to high youth unemployment.
While the country has generated 112 million (11.2 crore) jobs in the last decade, only 10% of these are formal positions. India's labor force participation rate, at 58%, lags behind its Asian counterparts. Nguyen highlighted the significant potential in India's services sector, which contributes more than half of the GDP, suggesting that the country can leverage this and expand into manufacturing to attract companies diversifying from China.
Nguyen emphasized the importance of the upcoming administration focusing on manufacturing to benefit from demographic and geopolitical advantages. She mentioned that although the path ahead may be difficult, it is never too late to make the right decisions.
