India’s workforce, totaling nearly 56.5 crores, is distributed across various sectors: over 45 percent in agriculture, 11.4 percent in manufacturing, 28.9 percent in services, and 13.0 percent in construction, according to the Economic Survey 2023-24 released by the finance ministry on Monday.
The survey also highlighted that female labor force participation has been rising over the past six years, and the unemployment rate has been declining, with the rate dropping to 3.2 percent in 2022-23. “The female labor force participation rate has been rising for six years, from 23.3 percent in 2017-18 to 37 percent in 2022-23, driven mainly by the increasing participation of rural women,” the survey stated.
Amid the government’s push for the infrastructure sector, the survey noted that while the services sector remains a major job creator, the construction sector has gained prominence recently. To meet employment demands amid a growing population, the survey pointed out that the Indian economy needs to generate nearly 78.51 lakh jobs annually in the non-farm sector. The net payroll additions under EPFO have more than doubled in the past five years, signaling healthy growth in formal employment.
Regarding artificial intelligence, the survey emphasized that as AI becomes more prevalent in various economic activities, balancing technology deployment with labor is crucial. It suggests that agro-processing and the care economy are promising sectors for generating and sustaining quality employment.
The survey also highlighted the increase in candidates undergoing skill development through the government’s flagship programs, reflecting the emphasis on ‘Skill India.’ However, regulatory obstacles such as land use restrictions, building codes, and limits on sectors and hours for women’s employment hinder job creation. Removing these barriers is essential to boost employment and improve the female labor force participation rate.
Key policy focuses in the short to medium term include job and skill creation, tapping the full potential of the agriculture sector, addressing MSME bottlenecks, managing India’s green transition, dealing with the Chinese conundrum, deepening the corporate bond market, tackling inequality, and improving the quality of health for the young population.
“The growth strategy for Amrit Kaal is predicated on six key areas. Firstly, there must be a deliberate focus on boosting private investment. Secondly, the growth and expansion of India’s Mittelstand (MSMEs) is a strategic priority. Thirdly, the potential of agriculture as an engine of future growth must be recognized and policy impediments removed. Fourthly, there is a need to secure the financing of green transition in India. Fifthly, the education-employment gap must be bridged. And finally, focused building of state capacity and capability is required for sustaining and accelerating India’s progress,” the document reads.
According to the survey, the Indian economy can sustain a growth rate of over 7 percent in the medium term if structural reforms undertaken over the last decade are maintained. This requires a tripartite compact between the Union Government, State Governments, and the private sector.
(With ANI Inputs)
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