India Employment Outlook 2030: Navigating Sectoral Trends and Competencies

Executive Summary India’s job market is experiencing a transformation as the country has become the world’s fastest growing large economy in the aftermath of the COVID-19 pandemic. The country’s young population, whose median age is 28.4 years, holds a key to fuelling economic expansion. With a GDP growth rate of 7.8 percent, India could potentially achieve its target of becoming a US$5-trillion economy by 2026-27, with such growth being underpinned by strong private consumption and public investment. These goals are set against the ongoing shifts in the global landscape and dynamics of manufacturing, brought about by the pandemic, geopolitical tensions, and supply disruptions. Notably, the import demand of the United States (US) has pivoted away from China towards India due to the latter’s competitive cost structure, abundant labour resources, and burgeoning domestic market. In India, manufacturing is a vital sector that has consistently contributed 17-19 percent to the Gross Value Added (GVA). The Indian government has prioritised manufacturing through initiatives such as Make in India, Production Linked Incentive Schemes, and SAMARTH Udyog. The service sector also contributes a significant share to the GVA, exhibiting potential for generating employment and boosting economic growth.