Budget 2025: The Economic Survey states that the situation of unemployment in the country has improved in the last seven years. The unemployment rate in July-June 2017-18 was 6 percent, which reflects improvement in labor market indicators. Which has improved to 3.2 percent in FY 2023-24. To provide employment to India’s growing workforce, 7.85 lakh new jobs will have to be created every year by 2030.
Improvement on employment front
According to the Economic Survey, there has been good progress on the employment front in India in recent years. The 2023-24 periodic labor force survey (PLFS) released by the National Statistical Organization (NSO) indicates a strong improvement after the Kovid epidemic. The total unemployment rate for people aged 15 and above in the country has come down from 6 percent to 3.2 percent in 2023-24 in 2017-18. To provide employment to India’s growing workforce, 7.85 lakh new jobs will have to be created every year by 2030.
The unemployment rate in urban areas has improved on a quarterly basis, which has come down from 6.6 percent in the second quarter of FY 2024 to 6.4 percent in the second quarter of FY 2025. During the same period, the labor force participation rate (LFPR) in urban areas increased from 49.3 percent to 50.4 percent, while the labor-population ratio (WPR) increased from 46 percent to 47.2 percent.
India will become a developed country by 2047
India has targeted to emerge as a developed economy by 2047, for which it will have to achieve GDP growth of about eight percent per year by at least a decade. For this, investment will have to be increased from 31 percent to 35 percent of GDP.
The increase in manufacturing sector is important.
Development of manufacturing sector is necessary for developed India. Which has slowed down in the current financial year. Apart from this, it is also necessary to invest in emerging technologies like artificial intelligence, robotics and biotechnology. We have to develop the quality of our educational institutions and build a basic structure prepared for a high quality, future.
The government took several steps.
The Economic Survey states that the government has implemented several measures to promote employment, self -employment and labor welfare. The recently launched PM-Internship Scheme is emerging as a transformative step for employment generation. The increasing participation of youth and women in the workforce is also playing an important role.
The government is creating a flexible and efficient ecosystem to maintain coordination with emerging global trends such as automation, generative AI, digitization and climate change.
MSME needs encouragement
The MSME region is very important for India’s progress. The survey stated that this sector plays an important role in promoting entrepreneurship and creating large number of employment at low capital costs. As of 26 November 2024, MSME has provided employment to 23.24 crore people.
