India needs to create 78.5 lakh non-farm jobs annually by 2030

India’s evolving economy faces significant challenges, notably a skill gap where 51.25% of young graduates lack employment-ready skills. The country needs to create approximately 78.5 lakh non-farm jobs annually by 2030 to meet workforce demands. Trends like the rise of the gig economy and the growing role of smaller factories offer new opportunities. Agro-processing, in particular, presents a key avenue for boosting rural employment and supporting economic growth, as India adapts to demographic changes and technological advancements.

India’s economic landscape is evolving, presenting both challenges and opportunities. A significant issue is the skill gap among young graduates, with 51.25% of them lacking the necessary skills for employment. Addressing this through targeted educational and vocational reforms is crucial for aligning graduates with market needs.

The economy must create about 78.5 lakh jobs annually in the non-farm sector by 2030 to accommodate the growing workforce. Current employment trends show that 57.3% of the workforce is self-employed, while 18.3% works as unpaid contributors to household enterprises, highlighting the importance of family-run businesses in the rural economy.

Globally, the gig economy is on the rise, including freelancers, online platform workers, and self-employed individuals. In India, this trend is bolstered by tech-enabled platforms and increased internet access. According to NITI Aayog, in 2020-21, around 77 lakh workers were engaged in the gig economy, accounting for 2.6% of the non-agricultural workforce and 1.5% of the total workforce.

Regionally, Tamil Nadu, Gujarat, and Maharashtra lead in factory employment, together providing over 40% of the sector’s jobs. Additionally, smaller factories are becoming more prevalent. In 2021-22, factories with fewer than 100 employees represented 79.2% of all factories, though they contributed 22.1% of total employment and 20.9% of workers.

Agro-processing stands out as a key opportunity for rural development and the ‘farm to factory’ transition. MGNREGS data shows substantial demand for low-skill rural jobs, especially among women, who make up more than half of the MGNREGS workforce. Shifting some of this labor to agro-processing can boost productivity and create jobs, particularly in agriculture-dependent regions. This sector can also help diversify crops in areas like Punjab and Haryana, where groundwater scarcity is challenging paddy cultivation.

As India’s population ages and care needs expand over the next 25 years, adapting to these changes will be essential. At the same time, advancements in AI and automation are reshaping the job market. To achieve its goal of becoming a developed nation by 2047, India must navigate the complexities of automation and technological change.

While challenges like skill gaps and job creation are significant, opportunities in agro-processing and entrepreneurship offer promising paths forward. By focusing on these areas, India can foster a resilient and dynamic job market, driving sustainable growth and achieving its economic goals.