India's job market crisis highlights need for private sector growth

India's job market is facing significant challenges, with only 5-7% of the population in formal employment. Nearly 40% of these jobs are in the government sector. Experts highlight the need for private sector growth to create sustainable jobs. The Economic Survey 2024-25 projects that India must generate 7.85 million non-farm jobs annually until 2030. It emphasizes the importance of fostering sectors like manufacturing and infrastructure to boost employment and leverage the country's demographic potential. While there have been improvements in unemployment and labor participation, experts caution that these gains may not last. They call for flexible labor laws and streamlined business regulations to support ongoing job creation.