The labor market of India is faced with a hard truth – only 5 to 7% of the population occupies official jobs, and almost 40% of them are in government or the public sector. This harsh reality, highlighted by the Mihir Vora CIO of the mutual fund of the trust, raises an urgent question: has India really allowed its private sector to flourish?
Taking at X, Mihir Vora stressed the structural problems deeply rooted in the landscape of the employment of India. “We really did not allow the private sector to flourish,” he wrote, highlighting the need for a large-scale job creation. According to him, sustainable employment will only emerge by promoting the growth of the private sector in manufacturing, infrastructure and real estate – sectors that require strong confidence in companies and political support.
“Jobs will only be created in large numbers by creating physical assets – manufacture, factories, infrastructure, real estate – with the” animal spirit “private sector.” He also pointed out that the ease of doing business is a prerequisite for unlocking the full potential of the labor market.
The 2024-25 economic survey underlines this concern, providing that India must create 7.85 million non-agricultural jobs per year until 2030. The survey, prepared by the chief economic adviser of the Ministry of Finance, stresses that the generation of jobs is essential to take advantage of the demographic dividends of India and accelerate its passage from a non-agrarian workforce of India.
With 26% of the population of India aged 10 to 24, the survey describes the country as at the dawn of a unique demographic opportunity. However, without solid political interventions, job creation and skills development, experts warn that India’s demographic dividend could turn into a demographic disaster.
The survey notes a drop in unemployment and improvements in labor market participation, but warns that these gains will not be sustainable unless the labor laws are made flexible, the charges of compliance are relaxed and that the commercial regulations are rationalized.
