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India will have to create 90 million non-farm jobs over the next decade which will require an ambitious reform agenda able to deliver 8-8.5 per cent annual GDP growth and productivity gains, consulting firm McKinsey said.
In its latest report on India’s economy, McKinsey Global Institute said the country is at a turning point. “It needs to create at least 90 million jobs by 2030 as a new generation reaches working age, millions of workers move from farm work to better-paid jobs in other sectors, and more women participate in labour force,” it said.
Creating that many jobs will in turn require a strong boost to GDP growth, which will need to average between 8 and 8.5 per cent every year from 2023 to 2030, it said. This is an ambitious goal, given the slowdown in the year leading up to the COVID-19 pandemic, and the extreme economic uncertainties posed by the crisis itself. Yet, not taking steps to address the growth imperative now could mean a decade of stagnation, with low income growth and rising unemployment, McKinsey said.
“A clarion call is sounding for India in the demographic and economic trend. The country must get back on to a high-growth path to ensure sufficient gainful new jobs will be created over the next decade, and thus ensure continued prosperity,” said Shirish Sankhe, a McKinsey senior partner in Mumbai and report co-author. “To achieve this will take a clear vision, strong execution, and close collaboration among central government, state governments, and the business community. Everyone has a critical part to play.”
