Home / Knowledge / News / Textiles / India needs 90 mn non-farm jobs in 2023-2030: McKinsey

India needs 90 mn non-farm jobs in 2023-2030: McKinsey

Aug '20
Pic: Shutterstock
Pic: Shutterstock
India needs to create 90 million non-farm jobs between 2023 and 2030 to absorb new workers and an additional 30 million workers who could move from farm work to more productive non-farm sectors, according to a report by the McKinsey Global Institute, which said annual gross domestic product (GDP) growth of 8-8.5 per cent will be required after the pandemic with continued strong productivity growth and faster employment growth than in the past.

“To absorb this influx, the country will need about 12 million additional gainful non-farm jobs every year starting in fiscal-year 2023, triple the four million non-farm jobs created annually between 2012 and 2018. If an additional 55 million women enter the labour force, at least partially correcting historical underrepresentation, India’s job creation imperative would be greater," said the report titled ‘India’s Turning Point: an economic agenda to spur growth and jobs’.

“Choosing a high-growth path that creates 90 million gainful jobs requires India to simultaneously increase its rate of employment growth sharply and maintain its historically strong productivity growth. To achieve 8 per cent to 8.5 per cent GDP growth, net employment would need to grow by 1.5 per cent per year from 2023 to 2030, similar to the average net employment growth rate of 1.5 per cent that India achieved from 2000 to 2012, but much higher than the flat net employment (growth rate) experienced from 2013 to 2018," it said.

India will also need to maintain annual productivity growth at 6.5-7 per cent, which it achieved from 2013 to 2018, the report said. The two objectives—employment generation and growth—are not contradictory and “indeed, employment cannot grow sustainably without high productivity growth and vice versa", the report noted.

In the absence of urgent steps to spur growth, “India risks a decade of stagnating incomes and quality of life", the report said. Besides, in the high growth path, the manufacturing and construction sectors can accelerate the most.

A focused and enabling environment could potentially create 11 million new jobs in manufacturing, 24 million in construction, 22 million in the labour-intensive service sectors and 30 million in the knowledge-intensive service sectors, the report said and clarified that McKinsey looked beyond the pandemic with scenarios beginning in fiscal 2023, “assuming India takes steps to transition out of the covid-19 recession by then".

“If India fails to put in place measures to address pre-pandemic trends of flat employment and slowing economic growth and does not manage the crisis adequately, its economy could expand…with a decadal growth of just 5 per cent," it said underlining that in such a situation, the economy would absorb only six million workers compared to 60 million in the high-growth path, marking a decade of lost opportunity.

The McKinsey report said sector-specific policies for improving productivity in manufacturing and real estate, reducing the cost of doing business, unlocking supply in land markets, creating flexible labour markets, privatizing 30 or so of the largest state-owned enterprises can raise productivity and competitiveness.

Fibre2Fashion News Desk (DS)

Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 21st Oct 2020

Not much gain for Bangla RMG exporters from PRC decision

Despite China offering duty-free market access to 97 per cent of...

Pic: Shutterstock

Retail | On 21st Oct 2020

UK BEIS Committee seeks firms' replies on forced labour

The Business, Energy and Industrial Strategy (BEIS) Committee of the...

Pic: Shutterstock

Retail | On 21st Oct 2020

NRF, EuroCommerce to reinforce cooperation on data flow

How to legally transfer customer and employee data across the...

Interviews View All

Nuno Venda, ROQ

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Textile Industry, Head honchos

Textile Industry
Head honchos

Main challenges are breakdown of supply chain and shrinkage of manpower

Top executives, Textile industry

Top executives
Textile industry

Sri Lanka has a good sustainable track record and strong stories to back it

Carmen Makover,

Carmen Makover

Leading the digital textile printing industry, Israel-based Kornit...

Mario Ploner,

Mario Ploner

<div>Italian company Tecnomeccanica Biellese specialises in planning and...

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu &amp; Sky is a rapidly escalating brand with the...

Pierre Wiertz, EDANA

Pierre Wiertz

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Marcel Alberts, Eurofibers

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Eric Scholler, Groz-Beckert

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Aneeth Arora, Péro

Aneeth Arora

The Woolmark Company has partnered with handmade fashion label Péro and...

Sneha Arora, Label Sneha Arora

Sneha Arora
Label Sneha Arora

Sneha Arora, an alumnus of National Institute of Fashion Technology,...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search