Employment and Skill Development: Existential Priorities (2024-25) | Indian Economy for UPSC CSE PDF Download

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12
CHAPTER
361
EMPLOYMENT AND 
SKILL DEVELOPMENT: 
EXISTENTIAL PRIORITIES
India's labour market indicators have experienced substantial improvements 
in recent years driven by a robust post-pandemic recovery and increased 
formalisation. According to the Periodic Labour Force Survey, the unemployment 
rate has significantly declined over time, alongside positive trends in labour 
force participation and the worker population ratio. Factory employment data 
further reflects the manufacturing sector's resilience. 
To fully capitalise on the demographic dividend, it is well-recognised that creating 
quality jobs that offer sustainable livelihoods is crucial. Further, by prioritising 
reskilling, upskilling, and new-skilling, the government is aiming to align the 
workforce with global demands, enhancing both domestic and international 
employability. Simplifying compliances, promoting labour flexibility, and 
strengthening workers’ welfare are vital for driving sustainable job growth.  
Lowering the fixed costs of doing business through deregulation will create 
room for enterprises to hire more. To boost women's workforce participation, 
prioritising targeted skill development and providing entrepreneurial support 
is being pursued. Additionally, sectors like the digital economy and renewable 
energy offer vast potential for creating high-quality jobs, which is essential for 
achieving the Viksit Bharat's vision. 
INTRODUCTION
12.1. As the crucial link between growth and prosperity, the quantity and quality of 
employment in an economy determines how economic growth sustainably percolates 
the masses. With around 26 per cent of the population in the age group 10-24 years, 
India stands at the cusp of a once-in-a-lifetime demographic opportunity.
1
 As one of the 
youngest nations globally, India’s economic success depends on integrating its growing 
workforce into productive and meaningful roles, ensuring inclusive and long-term 
growth.
12.2. In 2014, India was ranked as the tenth-largest economy in the world. In under 
a decade, India surpassed the UK to reach the fourth position. She is poised to be the 
1  State of the World Population Report 2024, United Nations Population Fund (UNFPA) (https://www.unfpa.org/
swp2024)