Indian economy needs to create around 78.51 lakh jobs annually in the non-agricultural sector- Economic Survey

The survey also said that India's female labour force participation has been increasing and the unemployment rate has been declining over the past six years. The survey highlights improvements in Indian labour market indicators over the past six years, leading to a decline in the unemployment rate to 3.2 per cent in 2022-23.

The survey said employment in both urban and rural areas has recovered from the pandemic shock. “The female labour force participation rate has been rising for six years, from 23.3 per cent in 2017-18 to 37 per cent in 2022-23, driven mainly by rising participation of rural women,” the survey said.

Amid the government's efforts to boost infrastructure, the survey said that while the services sector still remains the major job creator, the manufacturing sector has been gaining prominence lately.

To meet the demand of the employment sector amid the growing population, the survey said that the Indian economy needs to create about 78.51 lakh jobs annually in the non-agricultural sector. The net payroll under EPFO ​​has more than doubled in the last five years, indicating healthy growth in formal employment.

Regarding AI, the survey says that as artificial intelligence is becoming more prevalent in various economic activities, it is important to adopt technological options for collective well-being. Employers should strike a balance between technology and labour. It suggests that agricultural processing and the care economy are promising sectors for creating and retaining quality jobs.

The rise in the number of candidates undergoing skill development through the government's flagship programmes has given rise to the 'Skill India' movement. However, regulatory barriers such as land use restrictions, building codes and limits on areas and hours for women's employment hinder job creation. It is essential to remove these barriers to boost employment and increase the labour force participation rate of women.

The Survey said that the key areas of policy focus in the short to medium term include employment and skill creation, harnessing the full potential of the agriculture sector, addressing MSME bottlenecks, managing India's green transformation, efficiently tackling the sugar problem, strengthening the corporate bond market, tackling inequality and improving the quality of health of our young population.

The document says, “The growth strategy for Amrit Kal is based on six key areas. First, there must be a deliberate focus on promoting private investment. Secondly, the development and expansion of India's Mittelstand (MSME) is a strategic priority. Third, the potential of agriculture as an engine of future growth must be recognised and policy impediments removed. Fourth, financing for India's green transformation must be secured. Fifth, the education-employment gap must be bridged. And finally, focused building of state capacity and capability is essential to sustain and accelerate India's progress.”

According to the survey, in the medium term, if we work on the structural reforms done in the last decade, then the Indian economy can grow at a rate of more than 7 percent on a sustained basis. For this, a tripartite agreement is required between the central government, state governments and the private sector.