The job market of India needs a serious overhaul

The Indian economy is basking with startups and the markets are jubilant as the global investors are making a beeline. Narendra Modi announced the beginning of “New India” soon after sweeping the polls of Uttar Pradesh. “The poor want a leg-up, not a handout,” said the Prime Minister while addressing millions in UP. Several experts echoed the urgent need for job creation as the country is swelling with a massive population of the young workforce, who are thirsty for a livelihood. India should generate more jobs than any other nation to utilise the massive army of manpower that it possesses, believe market experts.

Indian economy is backed by healthy GDP, but the country’s economy has failed in provoking the job market of the country. The market pundits think that this is high time and the government must take some stern steps to pull the job market back on track from this steep fall. The revival of the job market will further lead the country close to the vision of inclusive India and will generate jobs for all people everywhere that also includes people from different segments of the society.

The government must propel the service sector of the country which is growing at more than 8% and is creating maximum jobs for the nation. The records show that even after the global slowdown, the service sector of India continued its victory march, and recorded a CAGR of more than 8.6%. The massive automation in the capital intensive big industry is snapping the jobs, think observers. Though automation has increased the productivity and added sheen to the Indian economy, but the steady dip in the job market will destroy the socioeconomic balance in the years to come, admit experts.

An economic survey showed the need for the jobs that are formal and productive. The government's tax system must cushion the apparel and footwear sectors which are 80-fold more labour intensive than the automobile sector.

The government can aggravate the job market by reducing the corporate tax rate by 2% in FY18. The systematic reduction of the tax will reduce the burden of the cost of credit from the Indian banking skeleton, will also diminish the cost of capital and will further make the job-intensive sectors more thriving, hope experts. The costs for regulated industries will be reduced as they get a cost plus return.

This step can push the labour intensive industries of the nation and can further encourage them to grow faster and create more jobs in the market, assure market analysts.