India Inc lags in jobs
THE Economic Survey for 2023-24 highlights a concerning disparity within India’s corporate sector. While companies have enjoyed unprecedented profits, hiring and salary growth have not kept pace. The government has rightly emphasised that job creation predominantly occurs in the private sector, urging companies to increase hiring and worker compensation. Between FY20 and FY23, the profit before taxes for over 33,000 companies nearly quadrupled. Yet, this financial boon has not translated into corresponding growth in employment or wages. This imbalance poses a risk to India’s long-term economic stability and growth. For sustainable development, it is crucial that corporate profits benefit a broader spectrum of society.
The Economic Survey also underscores a collaborative approach between the Centre, state governments and the private sector, which is essential to meet the rising aspirations of Indians and achieve the vision of Viksit Bharat by 2047. It reveals that the road ahead is challenging, with geopolitical shifts, climate change concerns and the advent of artificial intelligence adding layers of complexity to the job market. Finance Minister Nirmala Sitharaman, presenting the survey, noted the Indian economy’s resilience and strong post-Covid recovery. However, she acknowledged that maintaining this trajectory required concerted efforts from all stakeholders.
An intriguing recommendation in the survey is for India to seek more foreign direct investment (FDI) from China to boost local manufacturing and tap into export markets. Despite strained ties and ongoing border tensions, greater FDI from China could integrate India into global supply chains and enhance export capabilities. This strategy, as the survey suggests, might be more beneficial than relying solely on trade, given the growing trade deficit with China.
