According to recent research by Goldman Sachs, India will have one of the lowest dependency ratios among major countries in the next 20 years; thus, the government needs to take advantage of a 20-year window of favourable demographics and raise per capita income levels.
The demographic structure is particularly conducive to economic growth throughout these two decades. India will have a higher percentage of working-age individuals throughout this time than dependents (young and elderly), according to the report.
According to the American multinational investment bank and financial services company, this is the perfect scenario since more people can work, produce, and contribute to the economy, which can increase overall wealth.
The report went on to say that India must invest in infrastructure, boost industries that spur growth, enhance education and skills, and create jobs.
As per the analysis, India will need to add about 10 million jobs yearly between FY25 and FY30 in order to sustain an average GVA (gross value added) growth rate of 6.5% per year.
Over 80% of construction workers are employed in the real estate industry, which might be stimulated by offering incentives for the production of affordable homes. The generation of jobs at all skill levels would be greatly increased by this.
In addition to creating more job possibilities in underserved areas, the establishment of Global Capability Centres (GCCs) in smaller cities and IT hubs in tier-2 and tier-3 cities would lessen the strain on Tier-1 urban centres.
Fiscal incentives that are shifted towards labour-intensive manufacturing industries like furniture, food processing, and textiles could help create jobs for workers with low to advanced skills.
According to the report, India has added almost 196 million jobs during the last 20 years, with two-thirds of those jobs being created in the last ten years. As more people have moved from agriculture to construction and service positions, there have been significant changes.
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