NCAER Report Highlights Skilling and Small Enterprises as Key Drivers for Job Creation and 8% GDP Growth Vision

NCAER released a report titled 'India's Employment Prospects: Pathways to Jobs' underlines the role of skilling and small enterprises as key drivers of job creation in the country. Further, it highlights the need to overcome bottlenecks in increasing both the quality and quantity of workforce participation and labour productivity.

The report cites that the increase in employment is primarily due to the rise in self-employment, while transition to a skilled labour force has been slow. Strengthening employment opportunities in labour-intensive manufacturing and services sectors could help sustain GDP growth at around 8%, consistent with the vision of Viksit Bharat.

Regarding persistent challenges in generating employment despite a distinct demographic advantage, on the supply side, India's workforce could benefit greatly from upskilling, particularly with the advent of new technologies and AI. Medium-skilled jobs dominate employment growth, especially in services whereas manufacturing remains low-skill intensive.

The report estimates the multiplier effects of inter-sectoral linkages to project that a moderate growth in Gross Output (GO) of the relatively more labour-intensive sub-sectors within manufacturing and services will lead to multi-fold job creation by 2030 '53% in the textile, garments, and related industries in manufacturing and 79% more jobs in trade, hotel and related services.

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