Economic Survey: India needs to create 78.5 lakh new non-farm jobs annually till 2030

The Economic Survey 2024-25 suggested that India will also need to create 78.5 lakh new non-farm jobs annually till 2030, achieve 100 per cent literacy, develop the quality of our education institutions, and develop high-quality, future-ready infrastructure at scale and speed.

The report, prepared by the Chief Economic Advisor to the Finance Ministry said, the ambitions and aspirations of the workforce align with the need to generate employment opportunities to leverage the country’s demographic dividend and to accelerate the structural transformation from farm to non-farm jobs.

"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."


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, as per the survey.

The unemployment rate has significantly declined over time, alongside positive trends in labour force participation and the worker-population ratio, said the survey.

To fully capitalise on the demographic dividend, it is well-recognised that creating quality jobs that offer sustainable livelihoods is crucial, the Eco Survey said. "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."

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As per the government paper, 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, the survey added.

The prosaic concern of unemployment weighs heavily on Asia's third-largest economy, which may now have to grapple with the slowest fiscal year growth in four years, exposing cracks in its economic momentum.

Without long-term strategies to tackle unemployment, India’s often celebrated demographic dividend risks turning into a demographic disaster, according to economists. This budget will not only shape the course for 2025 but also set the economic trajectory for the next four years of the NDA government under the leadership of PM Narendra Modi.

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As per experts, jobs will draw Sitharaman’s attention in the Union Budget that is set to be presented tomorrow.

India's economic growth highlighted in headlines that frequently eulogize its progress has struggled with employment.

Slowing economy:

Though India’s economy remains ahead of many leading global economies, recent signs of slowing have raised concerns about its trajectory. Growth dipped to 5.4 per cent in the July-September quarter, the lowest in seven quarters, intensifying doubts about addressing the country’s unemployment challenges. Consequently, the Reserve Bank of India (RBI) revised its growth forecast for FY 2024-25 from 7.2 per cent to 6.6 per cent.

Adding to the subdued outlook, the latest figures bring further cause for concern. According to the first advance estimates released by the government, India’s GDP is projected to grow at 6.4 per cent in fiscal year 2024-25—a four-year low and a notable drop from the 8.2 per cent growth recorded in FY24.