India needs to create 7.85m non-farm jobs annually: Economic Survey

NEW DELHI: India needs to create 78.5 lakh jobs annually in the non-farm sector in order to accommodate a fast-growing workforce, the Economic Survey for 2023-24 noted.

The Survey tabled in Parliament on Monday presented a broad estimate of the number of jobs the economy has to generate in order to cater to the ever-rising workforce.

More than jobs, the Survey added, economic growth is about generating livelihoods. Governments at all levels and the private sector will have to strive together for it. It said that the share of agriculture in the workforce will gradually decline from 45.8 per cent in 2023 to 25 per cent in 2047.

Two parts

The Economic Survey comprises two parts. The document’s first part includes the country’s economic developments and challenges. It also offers an overall review on the economy. The second part is focused on the past financial year.

Economy on strong footing

The survey found that the Indian economy is on a strong footing and is demonstrating resilience in the face of geopolitical challenges. “The Indian economy has consolidated its post-Covid recovery with policymakers – fiscal and monetary – ensuring economic and financial stability,” it added.

FDI

The survey noted that the Foreign Direct Investment (FDI) has held up pretty well. RBI data on India’s Balance of Payments (BoP) reveals that the investment interest of external investors, measured in terms of dollar inflows of new capital, was a tad lower at $45.8 billion during 2023-24 (FY24) compared with $47.6 billion in FY23. “This slight decline is in line with global trends,” the survey pointed out.

Retail inflation falls to 5.4%

The Economic Survey said the “inflationary pressures stoked by global troubles, supply chain disruptions, and vagaries of monsoons have been deftly managed by administrative and monetary policy responses. After averaging at 6.7 per cent in FY23, retail inflation declined to 5.4 per cent in FY24.”

India’s growth

Even as the global agencies such as IMF and ADB see India to grow at 7 per cent, the survey noted that “we “conservatively project a real GDP growth of 6.5–7 per cent, with risks evenly balanced, cognizant of the fact that the market expectations are on the higher side.”

What Survey has to say on China

The Economic Survey noted that China’s near-monopoly over-production and processing of critical and rare earth minerals has already been a cause of global concern. “It will also have significant repercussions for India’s renewable energy programme,” it added.

Renewable energy needs Rs30.5 lakh cr by 2030

Noting that the renewable energy sector is of paramount importance for any country, the survey said mobilization of finance as well as investment on competitive terms and resolution of land acquisition are key areas. The sector requires Rs30.5 lakh crore investment to meet the target of having 500GW renewable energy in India by 2030, as per the Economic Survey

Right balance needed Anantha Nageswaran, the Chief Economic Advisor (CEA), said that it is necessary for India’s IT and non-IT sectors to find the right balance between the deployment of technology and labour. The survey said the employment landscape is fast changing worldwide, and India, aspiring to be a developed nation by 2047. “Hence the country must partake in the massive reshaping of jobs that AI has and is likely to further spin off,” it suggested.