Economic Survey: India Needs To Generate 78.5 Lakh Non-Farm Jobs Every Year
Geopolitical churn, technological and climate changes will make generating livelihood a formidable challenge, it says.
The Indian economy needs to generate 78.5 lakh annual jobs in the non-farm sector to cater to the rising workforce and productivity in the agriculture sector also needs to be improved, according to the Economic Survey 2023–24.
To create these many jobs, there is a need to create the conditions for faster growth of productive jobs outside of agriculture, especially in organised manufacturing and services, said the survey that was released on Monday on the eve of the Union Budget.
"In their fascination for AI and fear of erosion of competitiveness, businesses have to bear in mind their responsibility for employment generation and the consequent impact on social stability," it said, suggesting that the companies should strike a balance between labour and capital deployment.
The impact of automation on workers is complex and uncertain, and the direction of technological change remains susceptible to forces of political economy, the report said. "India, thus, needs to invest in research and steer the AI bandwagon towards shared prosperity."
As the AI transformation happens, employees or job seekers will need skills beyond communication, collaboration and presentation, such as analytical thinking and innovation, according to the survey.
On skilling the survey said it is beneficial for the skill seeker, the one who provides it and the employers. "Therefore, it is a challenge that the market can solve and to the extent that regulatory hurdles stand in the way of the market solving this problem, that is the responsibility of the governments to remove them."
The report acknowledged that the development of an affordable, reliable and quality creche and elderly-care infrastructure is the Achilles heel for female participation in paid work, which should be determined by comparative advantage and choice rather than dictated by gender.
Technological change, geopolitical churn and climate change will make generating livelihood a formidable challenge, according to the survey. "Rising to it requires us — governments at all levels and the private sector — to strive together."
