India needs 10 million new jobs annually to sustain 6.5% GVA growth through FY30: Goldman Sachs report
This approach aims to align India's manufacturing sector with broader employment goals, as about 67 per cent of manufacturing jobs reside in labor-intensive fields.
)
India will require approximately 10 million new jobs each year from FY25 to FY30 to maintain an average GVA (Gross Value Added) growth of 6.5 per cent annually, according to a Goldman Sachs report.
Incentivizing affordable housing developments could stimulate the real estate sector, which employs over 80 per cent of the labor force within construction. This would provide a significant boost to job creation across various skill levels.
Establishing IT hubs to tier-2 and tier-3 cities and Global Capability Centers (GCCs) in smaller cities would reduce pressure on Tier-1 urban centers and increase job opportunities in underserved areas.
Shifting fiscal incentives toward labor-intensive manufacturing sectors, such as textiles, food processing, and furniture, could support job creation for low- to middle-skill workers.
While the government's Production-Linked Incentive (PLI) schemes have primarily benefited capital-intensive industries, Goldman Sachs notes an encouraging shift towards more labor-intensive sectors, including textiles, footwear, toys, and leather goods.
This approach aims to align India's manufacturing sector with broader employment goals, as about 67 per cent of manufacturing jobs reside in labor-intensive fields.
Over the past two decades, India added approximately 196 million jobs, with two-thirds of these positions created in the last decade. Significant shifts have occurred as more workers have transitioned from agricultural to construction and service roles.
Construction remains a primary driver for employment in India, accounting for roughly 13 per cent of total jobs. Investment in real estate and infrastructure has not only created jobs but has also positively impacted income levels across low- to medium-income households.
Similarly, the services sector, which contributes about 34 per cent of total employment, has expanded significantly. Notably, the retail trade segment has benefited from digital transformation, as retailers shift to online platforms, generating new roles in areas like inventory management, packaging, and delivery services.
An increase in India's Labor Force Participation Rate (LFPR) from 50 per cent in FY18 to 60 per cent in FY24 has been driven largely by female participation, particularly in rural areas.
Factors contributing to this rise include improved measurement practices, greater financial inclusion through credit schemes targeting women, and expanded opportunities in small and micro-enterprises.
India's demographic transition offers a unique 20-year window to capitalize on a low dependency ratio, with a sizable working-age population set to enter the labor market.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES

LIC Saral Pension Plan: How to get Rs 64,000 annual pension on Rs 10 lakh one-time investment in this annuity scheme that everyone is talking about

Gratuity Calculation: What will be your gratuity on Rs 45,000 last-drawn basic salary for 6 years & 9 months of service?

Rs 1,500 Monthly SIP for 20 Years vs Rs 15,000 Monthly SIP for 5 Years: Know which one can give you higher returns in long term

LIC Saral Pension Plan: How much should you invest one time to get Rs 64,000 annual pension for life?

Income Tax Calculations: What will be your tax liability if your salary is Rs 8.25 lakh, Rs 14.50 lakh, Rs 20.75 lakh, or Rs 26.10 lakh? See calculations

8th Pay Commission Pension Calculations: Can basic pension be more than Rs 2.75 lakh in new Pay Commission? See how it may be possible

SBI Revamped Gold Deposit Scheme: Do you keep your gold in bank locker? You can also earn interest on it through this SBI scheme

Monthly Pension Calculations: Is your basic pension Rs 26,000, Rs 38,000, or Rs 47,000? Know what can be your total pension as per latest DR rates
02:17 PM IST