The Indian economy is projected to grow by 7.5% or more in the current financial year, with a significant focus on job creation recommended for the upcoming 2026-27 Budget. Business leader TV Mohandas Pai emphasized the importance of sustaining the momentum in job generation. Pai highlighted the influx of 1.2 to 1.4 crore new members joining EPFO, indicating a positive trend in employment opportunities.
India faces the challenge of a substantial youth population entering the workforce due to a demographic shift. With approximately 2.5 crore young individuals entering the job market annually, there is a growing demand for employment opportunities. However, Pai noted that a majority of available jobs pay less than Rs 20,000, underscoring the necessity of creating higher-paying positions, particularly in urban areas.
Pai advocated for the expansion of the Kaushal scheme to incentivize the private sector in generating more jobs. He proposed designating 350 impoverished districts as Special Employment Zones, offering financial incentives to employers hiring in these regions. By providing support such as ESI and PF contributions for employees, Pai believes this initiative can spur job creation in economically disadvantaged areas.
Investing in infrastructure development across 5,000 smaller towns in India was also recommended by Pai to stimulate industrial growth and enhance living standards. By improving amenities in these towns, Pai anticipates a rise in urbanization and job opportunities outside major cities. Additionally, he suggested allocating funds to enhance the infrastructure of the top 10 cities in India to further boost economic growth and quality of life.
