The Economic Survey 2024-25 highlights that India will need to create 78.5 lakh new non-farm jobs annually until 2030 to accommodate the growing workforce. Additionally, the survey calls for achieving 100% literacy, improving the quality of education institutions, and building future-ready infrastructure at scale and speed.
The report, prepared by the Chief Economic Advisor (CEA) to the Finance Ministry, emphasizes that India must leverage its demographic dividend to accelerate the shift from farm to non-farm jobs. This transition is crucial for achieving long-term economic growth and improving living standards.
Tapping into India’s Demographic Advantage
India stands at a critical juncture with 26% of its population aged between 10-24 years, representing a unique demographic opportunity. The survey stresses that India’s economic success will largely depend on integrating its youthful workforce into productive and meaningful employment. The quality and quantity of jobs will determine how broadly economic growth can benefit the population. As one of the youngest nations in the world, India’s ability to turn this demographic advantage into sustained prosperity will depend on effective skills training and ensuring that the workforce is aligned with future demands.Unemployment and Slowing Growth: A Growing Concern
While India’s economy continues to outperform many global economies, the Economic Survey raises concerns about the employment challenge amid slowing economic growth. India’s unemployment rate has improved, but the need for quality job creation remains pressing. If India does not create sustainable livelihoods for its workforce, the demographic dividend could turn into a demographic disaster, according to economists.
The survey also emphasizes the importance of reskilling, upskilling, and new-skilling to meet both domestic and global job market demands. Measures to simplify business regulations, improve labour flexibility, and enhance worker welfare will be essential for driving job creation.
Economic Slowdown and the Need for Employment Focus
India’s economic slowdown has raised new concerns about its growth trajectory and ability to tackle unemployment. The country’s GDP growth fell to 5.4% in the July-September quarter, the lowest in seven quarters. This slowdown has intensified doubts about India’s ability to address the unemployment challenge.
In response, the Reserve Bank of India revised its growth forecast for FY25 to 6.6%, down from 7.2% previously. First advance estimates released by the government suggest a 6.4% GDP growth rate for FY25, marking a significant drop from the 8.2% growth recorded in FY24. As the country faces these economic challenges, job creation is expected to be a central theme in the Union Budget, with Finance Minister Nirmala Sitharaman likely to focus on measures to boost employment.
