India Needs 8 Million Jobs a Year, CEA Urges Action

Chief Economic Adviser highlights the urgent need for manufacturing growth, tech skill investment, and domestic innovation to secure India’s economic future.

New Delhi: According to Chief Economic Adviser V Anantha Nageswaran, India will need to create 8 million jobs every year over the next 10-12 years. If India wants  to continue its economic growth and achieve its ambitious goal of becoming a developed country by 2047. 

Speaking at an economic summit, the CEA pointed out that job creation is a key component of India’s long-term development plan. A growing population of young people is challenging, but it also presents an opportunity to employ the millions of people that enter the workforce each year. 

“India’s young people are our greatest asset. But if we don’t provide them with a decent job, the demographic dividend can become a demographic liability,” Nageswaran cautioned.

Manufacturing as a Growth Engine

A large part of this job growth, the CEA noted, has to come from manufacturing. The manufacturing field has historically been underperforming in terms of GDP. Unlike services, manufacturing takes semi-skilled and low-skilled labor, and is vital for mass employment.

He called on policymakers and businesses to raise the sector’s share of GDP, and help further India’s integration into global value chains, especially in electronics, textiles, and automotive components.

AI and Work of the Future

Regarding technological disruption, Nageswaran cautioned that automated intelligence could replace many entry-level white-collar jobs. This includes roles in key service sectors such as customer support and information technology. He emphasized the importance of balancing automation with labor-centric economic policies. Alongside the push for technological advancement, there should be a strong focus on large-scale investment in skill development and retraining programs to prepare the workforce for the changing job landscape.

Innovation and Investment at Home

With indirect uncertainties in the global economy (reduced world trade), India should become increasingly confident and reliant on domestic innovation and the private sector for investment . The CEA reiterated increasing public infrastructure, ease of doing business, and encouraging entrepreneurship as a few of the ways of igniting economic growth and employment in one’s economy.

A National Mission

The 8 million jobs a year number is not just an economic necessity, it’s a social and strategic mission, Nageswaran said. If we don’t meet that target, we will see more unemployment, social unrest—and miss out on the possibility of taking advantage of India’s demographic dividend.

As India forges its way to a developed nation by 2047, job creation will be an essential part of the plan for success. Over the next decade, India will face the challenge of growing its economy while creating an inclusive, sustainable, and future-ready economy.