| Syllabus: GS-III, Subject: Economy, Topic: Unemployment and issues, Issue: Employment issues |
Issues in India’s employment ecosystem:
- Only 46.6% of working age population is actually working.
- Over half of all workers in India are self-employed, including unpaid helpers.
- India’s development strategy focused on services rather than manufacturing.
- Jobs in the IT sector shrank for the first time in 25 years due to automation and AI.
- Skills deficit is a major challenge.(Only 50% youth employable-India Skills Report 2023)
- Low-skilled services remain the primary job absorbers.
The way ahead:
- Global Capability Centers, offshore units of MNCs, have potential to become India’s major export earners, employing millions by 2030.
- India’s tech startups, if scaled up responsibly, can generate significant direct and indirect employment, especially in AI, SaaS, defence, and greentech.
- India’s transition to renewable energy offers opportunities for 50 million new “green economy” jobs by 2030, (World Economic Forum)
- To address the jobs deficit, India needs to support small-and-medium manufacturers, leveraging digital infrastructure for access to credit, resources, and customers.
