Job creation in large numbers needed: Economic Survey

Economic Survey 2018-19 called for nourishing India's laggard MSME sector in order to create jobs in large number as India's working age population is expected to grow by 97 lakh per year during the coming year and 42 lakh per year in 2030.

“Job creation in large numbers remains an urgent imperative to provide financial and social inclusion for our young population. After all, a well-paying job provides the best form of financial and social inclusion to not only the individual but also his/her entire family, the survey said.

It said about 55-60 lakh jobs will have to be created annually over the next decade if we assume that the labour force participation rate (LFPR) would remain at about 60 per cent in the next two decades, it said.

It said the policies followed in over the last seven decades have stifled the growth of MSMEs in the economy.

“MSMEs that grow not only create greater profits for their promoters but also contribute to job creation and productivity in the economy. Our policies must, therefore, focus on enabling MSMEs to grow by unshackling them,” the survey said.

Batting for more start-ups, the survey said young firms contribute significantly to employment and a national value added.

Suggesting flexibility in labour laws, the survey said a comparison between the indicators for labour, capital and productivity of manufacturing firms in the inflexible and flexible states makes it amply clear that flexibility in labour laws creates a more conducive environment for the growth of the industry.