Job number one

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.
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