India will need about one crore new jobs every year by FY 2029-30 to maintain an annual growth rate of 6.5 per cent. According to the Goldman Sachs report, setting up IT hubs in second and third tier cities and Global Capability Centres in smaller cities will reduce pressure on big cities. This will increase employment opportunities in less serviced sectors.
Impact of PLI schemes
According to the report, fiscal incentives need to be shifted towards labour-intensive manufacturing sectors such as textiles, food processing and furniture. This can help create jobs for low to medium skill workers. The government’s production-linked incentive (PLI) schemes have mainly benefited capital-intensive industries.
Along with this, Goldman Sachs has pointed out the need for more changes in more labour-intensive sectors including textiles, footwear, toys and leather goods. This can link India’s manufacturing sector with broader employment targets, as about 67 per cent of manufacturing jobs remain in labour-intensive sectors.
