Job Creation Challenge in India: A Test for Modi’s Government
Job creation is a pressing issue for Indian Prime Minister Narendra Modi’s third term, with the young workforce struggling to secure employment. Last year, India surpassed China as the world’s most populous country, with over 40% of its 1.4 billion population under 25 years old. The Bharatiya Janata Party (BJP) fell short of expectations in the general elections due to high joblessness rates.
India’s recent budget allocated $24 billion over five years to boost job creation, focusing on employment, skilling, small businesses, and the middle class. The government plans to launch a scheme offering internship opportunities to 10 million youth in top companies.
With an unemployment rate of 9.2% in June, India faces a growing crisis. Despite robust economic growth projections, the country struggles to provide enough jobs. Experts suggest a focus on labor-intensive manufacturing and support for small and medium enterprises to address the issue.
The formalization of India’s economy aims to generate employment opportunities, with the government implementing schemes to incentivize hiring in the formal sector. Despite challenges, efforts are underway to bridge the gap between formal education and skills development.
As India strives to tackle its job crisis, innovative solutions and sustained support are critical for sustainable and inclusive economic growth.
Edited by: Wesley Rahn