In the next five years the workforce requirement in the country will go up from 520 million to 574 million. This means that there will be openings in almost all sectors. Hence, there is need to recognise the opportunities and prepare for the supply, says KP Shashidharan
India has one of the largest and fastest growing economies in the world. With 1.2 billion people and the world’s fourth-largest economy, the recent growth and development has been one of the most significant achievements of our times. Over the six-and-a-half decades since Independence, the country has brought about a landmark agricultural revolution that has transformed the nation from chronic dependence on grain imports into a global agricultural powerhouse that is now a net exporter of food. life expectancy has more than doubled, literacy rate has quadrupled, healthcare has improved, and a sizable middle class has emerged. India is now, home to globally recognised companies in pharmaceutical and steel and information and space technologies, and a growing voice on the international stage that is more in keeping with its enormous size and potential.
The nation’s journey on the path of economic reforms has transformed it. Its large and growing population is its best asset and can quadruple GDP and catapult India to the league of developed economies over the next decade. All this if a billion could be transformed into a productive workforce.
Jobs continue to be created and needing an educated workforce. We need to recognise new opportunities and prepare the supply side. Projections for labour force and employment for the year 2009-10 were followed by a projection of the same for the period 2010-2015 on a yearly basis. This yielded the total magnitude of labour force increasing from 520 million in 2009-10 to 574 million in 2014-15 implying approximately 10 to 11 million additional number of persons joining the labour force each year during this period. In next five years, various sector that are likely to hold us in good stead in the future in terms of employment generation and business growth.
INFORMATION TECHNOlOGY
The IT sector has been the country’s bright sector for quite some time now. The industry has contributed considerably to changing India’s image from a slow developing economy to a global player in providing world class technology solutions. According to the India Brand Equity Foundation figures, the Indian IT industry is set to touch $225 billion by 2020. Industry experts and NASSCOM say that the Indian IT workforce will touch 30 million by 2020, becoming the highest sector employer. This will be coupled with steady increase in pay in a sector already offering a high base. The outsourcing industry too is looking towards India and is expected to be a $2.5 billion industry in the next two years.
TElECOM
According to Zinnov estimates, India already has nearly 850 million mobile phone subscribers; with a 15 per cent smartphone penetration. All this points to a penetration that is fuelling the growth of enterprise mobility in India, which will lead to significant employment growth. The Telecom Regulatory Authority of India too is targeting a 10-fold increase in broadband subscribers to100 million by 2014. Outsourcing revenues from the telecom sector, as per Ernst & Young, are set to grow at a compound annual growth rate of 31 per cent to nearly $2 billion in 2012. Today, the nation is at a stage in telecom growth that probably the US was 30 years ago. Our mobile and Internet penetration has to increase further, resulting in a new era in enterprise mobility.
HEAlTHCARE
There are clear indications that healthcare is going to be a major sector that stimulates economic growth and contribute to employment. Over 40 million new jobs are expected to be generated by 2020, as per a report titled India’s New Opportunities-2020 by the All India Management Association, Boston Consulting Group and the Confederation of Indian Industries (CII). The Indian healthcare industry also has advantages over other developing countries in becoming a global hub for medical tourism. The medical treatment and educational services are a fraction of the cost in developed countries.
While we may lag in molecule development and drug patents, an increasing disposable income has led to a strong domestic market potential. This will result in significant employment generation across various functions, like sales, marketing, HR, IT and operations, within the industry.
INFRASTRUCTURE
Today, we are the fourth largest and probably the second-fastest growing economy, with infrastructure being one of the cornerstones. The infrastructure industry is highly fragmented and hence difficult to gunge its exact size and the jobs it generates each year in absolute terms. However, be it roads and highways, railways, aviation, shipping, energy, power or oil and gas, the Government and the various State Governments seem to making rapid progress. This has led to significant employment generation, though a majority of it is still in the unorganised sector. Over the next 10 years, the infrastructure sector will need to continue its growth momentum and is likely to maintain a growth rate anywhere between seven to 10 per cent.
RETAIl
Over the past few months, the retail sector has grabbed headlines with talks of 100 per cent 0FDI in single brand retail, which is at present, capped at 51 per cent. While the outcome is still undecided, the opening up of India's retail will create a stronger, organised industry that will help in generating employment. Today, only a small part of retail is organised. Despite this, it is estimated that the sector in India is worth more than $400 billion, with domestic and international players planning to expand across the country. Industry leaders predict that the next phase of growth will emerge from rural markets. There are projections of the workforce doubling by 2015, from the present, five lakh in both organised and unorganised sector.
(The writer is director general CAG and co-author of BIG-Business India Guru)