It’s pouring employment, and things will only get better because of the influx of startups that have been popping up because of the Modi government’s facilitation role.
India’s employment landscape has undergone a transformative shift over the past decade, witnessing unprecedented job creation and economic growth. From 2014 to 2024, under Prime Minister Narendra Modi’s leadership, India generated 17.19 crore additional jobs, a remarkable contrast to the 2.9 crore jobs created during the Congress-led UPA government’s tenure from 2004 to 2014. The employment growth rate under the Modi government has soared to 36 percent, far surpassing the modest 6 percent growth during the preceding decade. These figures, corroborated by the RBI-KLEMS survey, underscore the effectiveness of policies and initiatives aimed at fostering economic development and employment generation.
A detailed sector-wise analysis reveals significant progress across agriculture, manufacturing, and services. Employment in the agriculture sector, which declined by 16 percent during the UPA era, has rebounded with a robust 19 percent growth under the Modi government. Similarly, the manufacturing sector’s employment growth rose sharply by 15 percent, compared to a mere 6 percent earlier. The services sector, a critical driver of economic progress, recorded a 36 percent growth from 2014 to 2023, exceeding the 25 percent growth observed during the UPA tenure.
India’s labor market statistics further highlight this transformation. As of March 2024, the total number of employed individuals reached 64.33 crore, up from 59.67 crore in March 2023, representing a year-on-year growth of 6 percent. The unemployment rate dropped from 6 percent in 2017–18 to an all-time low of 3.2 percent in 2023–24. Simultaneously, the workforce participation rate (WPR) climbed from 46.8 percent in FY18 to 58.2 percent in FY24, and the labor force participation rate (LFPR) increased from 49.8 percent to 60.1 percent over the same period. These improvements indicate a vibrant job market and a more inclusive economy.
The employability of India’s youth has also seen substantial advancements. The India Skill Report highlights a rise in youth employability from 33.95 percent in 2013 to 54.81 percent in 2024. Youth employment rates increased from 31.4 percent in FY18 to 41.7 percent in FY24, while the youth unemployment rate declined from 17.8 percent to 10.2 percent. Over the past seven years, 4.7 crore youth aged 18–28 years entered the formal job market under the Employees’ Provident Fund Organisation (EPFO) umbrella, signaling improved opportunities and awareness of social security benefits.
Government initiatives have played a pivotal role in this employment boom. Schemes like the Pradhan Mantri Mudra Yojana (PMMY), Aatmanirbhar Bharat Rojgar Yojana (ABRY), and Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) incentivized job creation, especially in small and medium enterprises. PMMY alone sanctioned 46.78 crore loans amounting to ₹28.05 lakh crore as of January 2024, helping small businesses thrive and creating millions of jobs. Additionally, the PM Vishwakarma Yojana and PM SVANidhi schemes extended support to artisans, craftspeople, and street vendors, enhancing self-employment opportunities and improving livelihoods.
The EPFO’s data for October 2024 illustrates the rising employment trend, with a net addition of 13.41 lakh members, including 7.50 lakh new members. Women’s workforce participation is also on the rise, with 2.09 lakh new female members joining in October 2024 alone. This shift towards a more diverse workforce reflects a broader societal transformation driven by inclusive policies and targeted outreach.
India’s economic recovery from the COVID-19 pandemic has been remarkable. The Aatmanirbhar Bharat Rojgar Yojana, for instance, supported over 60 lakh employees and 1.53 lakh employers by reducing layoffs and mitigating the pandemic’s impact. The PMRPY brought informal workers into the formal economy by covering EPF contributions for new employees, benefiting over 1.23 crore workers as of January 2024.
Efforts to foster entrepreneurship and innovation have also bolstered employment. Flagship programs like Start-up India, Make in India, and the Production Linked Incentive (PLI) scheme positioned India as a global manufacturing and services hub. The Start-up India Seed Fund Scheme (SISFS) and Atal Innovation Mission (AIM) nurtured startups, creating job opportunities and fueling economic growth. As a result, India’s startup ecosystem has flourished, generating jobs and attracting global investment.
Skill development programs under the Skill India Mission have further enhanced employability. Initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), National Apprenticeship Promotion Scheme (NAPS), and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) have equipped millions of youth with industry-relevant skills. These efforts are complemented by schemes like the Swarnjayanti Gram Swarozgar Yojana (SGSY) and Samarth, which provide financial assistance and training to individuals and Self-Help Groups (SHGs) for self-employment ventures.
The government’s focus on infrastructure development has created a multiplier effect on job creation. Programs like the Pradhan Mantri Gram Sadak Yojana (PMGSY), Pradhan Mantri Awas Yojana (PMAY), and the Syama Prasad Mukherji Rurban Mission (SPMRM) have not only improved living standards but also generated employment in construction, trade, and allied sectors. The 2023–24 Budget’s allocation of ₹10 lakh crore for capital investment underscores the government’s commitment to driving growth and employment.
India’s unemployment rates compare favorably with global benchmarks. As of FY24, the country’s unemployment rate stands at 3.2 percent, lower than the rates in the USA (3.8 percent), Canada (6.3 percent), and France (7.3 percent). This achievement underscores the effectiveness of India’s economic policies in creating jobs and reducing unemployment.
Looking ahead, initiatives like the PM Vishwakarma Yojana and Stand-Up India will continue to empower marginalized communities and foster entrepreneurship. As of February 2024, the Vishwakarma scheme supported 42.70 lakh artisans, while Stand-Up India disbursed loans worth ₹49,593 crore to SC/ST and women entrepreneurs. These programs reflect the government’s commitment to inclusive growth and social equity.
The Modi government’s decade-long tenure has transformed India’s employment landscape, creating millions of jobs and driving economic progress. By fostering entrepreneurship, enhancing skill development, and implementing inclusive policies, the government has positioned India as a global economic powerhouse. As the country moves forward, these efforts will undoubtedly continue to yield positive outcomes, ensuring sustained growth and prosperity for all.
