ALIGNING ECONOMIC GROWTH WITH EMPLOYMENT IN INDIA

India's economic growth over the past few decades has been impressive, but the benefits have not reached everyone equally.

- DR. SAURABH BANDYOPADHYAY

While urban areas and formal sectors have prospered, many in rural and informal economies remain excluded. The long-anticipated 'trickle-down' effect has not materialized, emphasizing the need for inclusive and employment-oriented policy interventions.

Technological advances, especially Artificial Intelligence and digitalization, are reshaping the job market. These changes demand a workforce that can adapt quickly, highlighting the urgency of robust skilling and reskilling systems. In this context, one of the most promising developments has been the rise of India's start-up ecosystem. Now the third-largest globally, it has driven innovation, created jobs, and become more inclusive, with increasing participation from women and entrepreneurs beyond metropolitan centers. Yet, while the momentum is encouraging, deeper structural challenges remain.

India's start-ups symbolize opportunity but cannot address the full scale of the country's employment needs. Each year, millions of individuals enter the labor force, yet start-ups account for only a small fraction of the jobs required. To bridge this gap, India must also prioritize labor-intensive sectors like agriculture, construction, manufacturing, and essential services. These areas hold far greater potential to generate employment for low- and mid-skilled workers.