Need for more jobs: India faces a significant challenge in job creation as it needs to generate 148 million additional jobs by 2030 to accommodate its growing population, according to Gita Gopinath, First Deputy Managing Director of the International Monetary Fund (IMF).
Speaking at the Diamond Jubilee event of the Delhi School of Economics, Gopinath noted that while India has seen an average growth rate of 6.6 per cent over the past decade, the employment rate has remained below 2 per cent.
Gopinath highlighted that job creation in the country has lagged behind other G20 nations. “Given population growth projections, India needs to create an additional 60-148 million jobs in total by 2030,” he said, highlighting the urgency of the situation as the country approaches 2024.
Fundamental reforms
To achieve this ambitious goal, Gopinath called for fundamental reforms, including land reforms and effective enforcement of labour codes. He stressed the importance of increasing private investment, which has not kept pace with the country’s economic growth. While public investment is progressing at a good pace, private sector investment needs to improve significantly.
The IMF official also highlighted the need to modernize the education system to improve the skills of the workforce. “Improving the regulatory environment and broadening the tax base are essential steps to facilitate job creation,” she added.
Gopinath’s remarks come against a backdrop of rising unemployment and underemployment in India. He said the country should not focus on just one sector but adopt a comprehensive strategy that supports various industries to generate the required number of jobs.
As India continues to advance its economic outlook, Gopinath’s remarks underscore the critical need for a coordinated effort among policymakers to implement structural reforms that can boost job creation and sustain economic growth. The IMF projections highlight the urgency for India to act quickly to take advantage of its demographic dividend and ensure a prosperous future for its workforce.
(With PTI inputs)
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