India Creates 46.7 Million Jobs in Fiscal 2023-24

July 9, 2024

India’s employment rate went up a lot in the fiscal year 2023–24, adding 46.7 million new jobs for a total of 643.3 million jobs across the country. The number of jobs has grown by 6%, which is a big jump from the 3.2% growth rate in the previous fiscal year. These numbers are shown in the Reserve Bank of India’s (RBI) newly released provisional output report.

The Significance of RBI’s Provisional Productivity Report

The RBI has now posted a provisional estimate for economic productivity for FY24. This is the first time that this has been done. In contrast to its previous reports, which only looked at past data, this new report measures output using currently available data. This important change makes it easier to see how India’s economy is changing right now, especially in the job market.

Contrasting Views on Unemployment

Even though there are signs that more jobs are being created, the rising jobless rate is still a worry. The Center for Monitoring the Indian Economy (CMIE) reported that the jobless rate rose from 7% the previous month to 9.2% in June 2024. This was the highest rate in eight months. These numbers differ from the positive news about job creation, which has led to ongoing arguments about “jobless growth,” a big topic of conversation during the last parliamentary election.

GDP Growth and Future Employment Prospects

India’s GDP grew by an amazing 8.2% in FY24, which was more than expected. The RBI has predicted that the GDP will continue to grow at a rate of 7.2% in FY25, which is in line with this strong growth. Citibank research, on the other hand, shows that even a 7% GDP growth would only create 8 to 9 million jobs, which might not be enough to meet the needs of workers over the next ten years. This study shows that the connection between GDP growth and real job creation is not as simple as it seems.

Methodology Behind the Data

The RBI’s estimates use information from the Ministry of Labour and the government’s National Accounts to extrapolate levels of output and employment across 27 industries that represent the whole Indian economy. These estimates are given at broad sectoral levels, such as for agriculture, manufacturing, and services. This gives a full picture of job conditions in many economic areas.

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