A new report by the National Council of Applied Economic Research (NCAER) has found that boosting workforce skills and improving the productivity of small enterprises could significantly accelerate job creation in India.

About the Report

• Report Title: “India’s Employment Prospects: Pathways to Jobs”
• Released by: National Council of Applied Economic Research (NCAER)

Key Findings of the Report

The report underscores that India’s demographic advantage hinges on significantly improving skill levels.

• Current Employment Landscape: India’s recent employment growth has been primarily driven by self-employment.
  • The transition to a more skilled workforce remains slow.
  • Skilling the Workforce is critical to sustain GDP growth of around 8% in the coming years.
• Challenge of Small Enterprises: Most small businesses operate at subsistence levels due to low capital, weak productivity, and limited use of modern technology.
• Digital & Credit Impact: Enterprises using digital technologies hire 78% more workers. 
  • Even a 1% increase in access to credit boosts hired workers by 45%.
• Shifting Job Market: Medium-skilled jobs, especially in services, are driving employment growth as new technologies and AI reshape industries. 
  • Manufacturing remains largely low-skill.
• Projected Gains: A 12 percentage-point rise in skilled workers could increase employment in labour-intensive sectors by over 13% by 2030.
  • A 9 percentage-point rise could generate 9.3 million jobs by 2030.
• High-Growth Sectors and Projections: The report identifies sectors with strong employment potential and projects substantial job gains from moderate growth:
  • Textiles, Garments & Related Manufacturing: Employment could rise by 53% by 2030.
  • Trade, Hotels & Related Services: Employment could surge by 79% by 2030.

Policy Recommendations

• For Manufacturing: Reorient production-linked incentives (PLI) schemes towards labour-intensive industries like textiles, garments, footwear, and food processing.
• For Services: Provide greater policy support to tourism, education, and healthcare to generate large-scale, inclusive employment.

Check Out UPSC CSE Books

Visit PW Store

Conclusion

The report reinforces that targeted policy support for skilling, technology adoption, and credit access for small enterprises, particularly in labour-intensive manufacturing and services. It will be central to achieving sustainable, high economic growth and creating quality employment nationwide.

DOWNLOAD PDF