ORF Report Forecasts Service Sector as Key Job Creator by 2028
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ORF Report Forecasts Service Sector as Key Job Creator by 2028
Overview of ORF Report Findings
The Observer Research Foundation (ORF) has released a comprehensive report titled 'India Employment Outlook 2030: Navigating Sectoral Trends and Competencies.' The report forecasts a significant increase in overall employment by 22 percent and a decline in unemployment by 97 basis points by the year 2028.
Service Sector Driving Job Growth
According to the ORF report, the service sector is poised to lead the surge in job creation in India. Each unit rise in services output is expected to contribute to a 0.12 percent increase in employment. This sector is crucial for driving employment growth as India aims to achieve its USD 5 trillion economic milestone.
High-Opportunity Sub-Sectors Identified
The report identifies ten high-opportunity sub-sectors within the service industry that are expected to experience rapid growth. These include digital services, financial services, healthcare, hospitality, consumer retail, e-commerce, renewable energy, global capability centers, and MSME and startup ecosystems.
Challenges in the Manufacturing Sector
While the service sector shows promising growth, the outlook for India's manufacturing sector appears less optimistic. Employment in manufacturing has declined due to technological advancements and increased automation. The report suggests transitioning towards industrial value chains associated with the service sector to rejuvenate employment opportunities.
Policy Recommendations and Importance of Entrepreneurship
Nilanjan Ghosh, a Director at ORF and one of the report's authors highlights the importance of policymakers and public sector schemes partnering closely with stakeholders to identify employability and skilling gaps. Upgrading curricula and skills is essential to ensure India's talent pool is industry-ready.
Additionally, the report emphasizes the role of entrepreneurship in driving future employment growth. Ghosh underscores the potential of a new class of entrepreneurs to stimulate job creation, expand India's startup ecosystem, spur innovation, and promote youth participation. Gender sensitivity and inclusivity in future workplaces are also emphasized.
Conclusion
The ORF report provides valuable insights into the future of India's job market, with a focus on the service sector as the primary driver of employment growth. By leveraging opportunities in high-opportunity sub-sectors and addressing challenges in manufacturing, India can achieve inclusive economic growth and job creation.
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