Chief Economic Advisor V Anantha Nageswaran highlighted promising prospects for job creation during an event on Tuesday, citing various government initiatives and increased investments in the economy.
Reflecting on the economic landscape of the past decade, Nageswaran noted a decline in capital formation and a moderation in credit growth. However, he expressed optimism that these challenges are now behind us. Nageswaran mentioned that non-food credit growth is currently at nearly 20 per cent, with both company and bank balance sheets in favorable conditions, leading to improvements in hiring.
Drawing from data from 2021-22, Nageswaran pointed out specific job growth figures: a decline of 15 lakh jobs in agriculture, while manufacturing and services sectors each added 37 lakh jobs, and the construction sector generated 19 lakh jobs. He expressed hope that this positive trend will persist, especially given the robust gross value added growth in manufacturing and construction.
Highlighting key government initiatives aimed at fostering job creation, Nageswaran mentioned:
- Skill Development: Efforts to enhance the skills of the workforce.
- EPFO Contribution: Provision of a 12 per cent contribution of employers towards the EPFO by the government.
- New Education Policy: Reforms in the education sector to align with future job demands.
- Structural Reforms: Vital changes in human development to support employment growth.
Additionally, Nageswaran emphasized the government’s investments in physical infrastructure, facilitating growth in industrial and manufacturing sectors, and thereby generating employment opportunities. Efforts to restore the health of financial institutions, including banks and non-banks, have also been underway.
While highlighting these positive steps, Nageswaran also acknowledged areas for improvement. He stressed the need to make regulatory and tax policy implementation less burdensome, coercive, and predatory. He noted that India still faces challenges in ease of doing business, particularly in terms of closing businesses.
He indicated a positive outlook for job creation in the coming years, underpinned by government initiatives and a conducive economic environment.
