Treat Employment as National Priority

India is the most populous and one of the youngest countries in the world. CII estimates suggest that over the next 25 years, India will add around 133 million people to its working-age population (15–64 years), which is close to 18 per cent of the total incremental global workforce. However, India has a short window to leverage this demographic dividend, as the worker population is expected to peak around 2043.

Employment generation is critical for equity and inclusion. Quality jobs at scale can lift millions out of poverty, reduce regional and social disparities, and ensure a more even distribution of growth benefits. Generating jobs is also vital for growth and resilience. In a consumption-driven economy like India’s, broadening consumption through good quality jobs both accelerates and stabilises growth.

Focus on Long-term Job Creation

Employment must therefore be treated as a national priority. This requires consistent growth policies that encourage steady investment and long-term job creation, rather than fragmented or short-term approaches. Despite Central and State Governments initiatives, from skill development to social security, India still lacks a unified national framework that comprehensively addresses employment and livelihoods.

Sectors to Zero in on

Job creation requires interventions on both demand and supply sides of the labour market. Demand is driven by economic and sectoral growth, while supply is influenced by skills, mobility, and societal norms. Without bridging these gaps, policy impact will remain limited. A particular concern is the employability of graduates. College curricula need focused reviews to make graduates job ready, supplemented with skilling programmes aligned to Industry and emerging sectors.

To address these challenges, an Integrated National Employment Policy is of urgent need. This should consolidate existing schemes and align diverse initiatives. It must be developed in coordination with states, key ministries, and Industry. Governance could be overseen by an Empowered Group of Secretaries, with implementation led by District Planning Committees that understand local challenges.

The policy must define time-bound goals, identify high-employment-potential sectors, and align trade, industrial, education, and labour policies to maximise job creation. It should also tackle labour market frictions, regional disparities, and barriers faced by women and marginalised groups, while ensuring that skilling incorporates technologies such as AI and robotics.

Another challenge is the mismatch between the availability of people and jobs, often across different states. The Centre and States must work together on migration policies and support systems that promote mobility constructively, without letting politics become a barrier. Building “One India” for employment mobility will be critical.

Timely implementation of the four Labour Codes must also be prioritised and clear transition guidelines and advisory support for businesses will be essential.

Job creation efforts must focus on labour-intensive sectors such as textiles, tourism, agro-processing, real estate, and healthcare. The MSME sector, which already employs over 25 crore people, requires a comprehensive support strategy covering access to finance, technology, skilling, and markets to generate “growth with jobs.” To address urban job distress, an Urban Employment Guarantee Programme could be piloted in select cities.

A major opportunity lies in the expanding gig economy, which employs between 80 lakh and 1.8 crore workers today and could grow to 9 crore by 2030. With participation spreading into Tier-2 and Tier-3 cities, it holds enormous potential for both job creation and formalisation. A National Policy for the Gig Economy can help unlock this potential.

The policy should promote sector growth while ensuring worker protection through skilling, finance, and social security. A centralised registry could enable seamless onboarding, preserve work histories, and reduce entry barriers. Fair contracts, safety standards, and grievance redressal must also be ensured. With the right institutional and regulatory support, the gig economy can become a cornerstone of India’s inclusive workforce.

Beyond numbers, improving job quality through better wages, safer conditions, and social security is vital. Affordable housing near industrial hubs can improve mobility and quality of life. Regionally balanced employment can be promoted through targeted interventions in 100 most underdeveloped districts, rural internships for graduates, and remote work and BPOs in towns.

Enhancing female labour force participation should be another priority. This requires incentives under the Employment-Linked Incentive (ELI) scheme, formalisation of Anganwadi and Accredited Social Health Activist roles, investment in childcare and eldercare, and campaigns to address societal norms restricting women’s work.

Need for Employment Data

Finally, high-quality, real-time employment data is critical. A dedicated Task Force could strengthen methodologies, expand coverage to the informal and rural workforce, and reduce the lag between data collection and publication.

With coordinated reforms, targeted investments, and an inclusive national employment strategy, India can fundamentally transform its employment landscape. Doing so is not only essential to unlocking its demographic dividend, but also central to achieving equitable, resilient, and sustained growth.

These employment-focused measures also tie in with the broader reform agenda that CII has laid out in its recent Report on Policies for a Competitive India. Employment generation, as emphasised in this article, is an integral part of that wider vision of building a competitive India and achieving Viksit Bharat by 2047.

Note: This article has been contributed by Mr Chandrajit Banerjee, Director General, CII, and Mr Sanjiv Bajaj, Past President, CII, and Chairman & Managing Director, Bajaj Finserv Ltd, was published in CII Communique, Volume 47, No. 10, October 2025.