New Delhi: India needs to create around one crore new jobs every year from FY2024-25 to FY2029-30 to maintain an average GVA (gross value added) growth of 6.5 per cent annually. Encouraging construction of affordable homes will boost the real estate sector as it employs over 80 per cent of the labour force in the construction sector, according to a Goldman Sachs report.

Apart from this, it will also give a significant boost to employment generation across various skill levels. The report says that setting up IT hubs in tier-2 and tier-3 cities and Global Capability Centres (GCCs) in smaller cities will reduce pressure on tier-1 urban centres and increase employment opportunities in under-served areas.

According to the report, giving more fiscal incentives to labour-intensive sectors such as textiles, food processing and furniture will facilitate employment generation for low to medium skilled workers. The report states that the Production Linked Incentive (PLI) schemes have mainly benefited industries that require more capital.

19.6 crore jobs created in two decades

According to the report, about 19.6 crore jobs have been created in India during the last two decades and two-thirds of these positions have been created in the last decade. An important change during this period is that people have moved from agriculture to the construction and service sectors.

Construction remains the primary driver of employment in India and 13 per cent of total employment comes from this sector. Investments in real estate and infrastructure have not only created jobs but have also positively impacted income levels among low-to-middle income households.