Experts warn that India's boost to capex may not necessarily create more jobs as construction has become equipment-intensive. There are factors which impact labour productivity, and while GenAI and PLIs remain buzzwords for employment, they may not be the solution
Finance Minister Nirmala Sitharaman is likely to ring in the various positives which the economy has seen during the Bharatiya Janata Party’s (BJP) regime—at the upcoming Budget next week. It will include the sharp over-8 percent spike in GDP growth for FY24, year-on-year capex growth, a boost to digital payments and record foreign exchange reserves.
The call now will be for ‘Viksit Bharat’ or Developed India by 2047. For that to take shape, India needs to not just create more jobs, but also ensure that those with a practical set of skills get suitable employment. The need to boost employment, labour participation and skilling was an electoral challenge—and a sensitive matter—for the ruling government, which has been unsuccessful in creating more jobs and improving productivity of labour.