The Hindu : Blueprint for 40 million jobs by 2020

Online edition of India's National Newspaper
Friday, Apr 18, 2003

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Blueprint for 40 million jobs by 2020

By Our Special Correspondent

A high-level strategic group, led by N.K. Singh, Member, Planning Commission (left), presenting a report `India's New Opportunity 2020 — 40 million new jobs, $200 billion annual revenue' to the Prime Minister, Atal Behari Vajpayee, in New Delhi on Thursday. — Photo: V. Sudershan

NEW DELHI APRIL 17. An expert group of economists and industrialists has worked out a blueprint to take advantage of India's growing and young population to create 40 million new jobs by 2020 which could add up to $200 billions to the country's gross domestic product (GDP).

Headed by the Planning Commission member, N.K. Singh, and comprising a number of economists and industrialists, this strategic group was set up by the All-India Management Association (AIMA). The Boston Consulting Group assisted the team in preparing its report, which was presented to the Prime Minister, Atal Behari Vajpayee, today.

The essence of the report is that India's opportunity lies in the changing demographics of the world, coupled with the growth of service economies in the developed countries. Ageing populations and reducing birth rates in almost all developed countries (and also in China which is estimated to have a 10 million deficit in population in the working age group of 19 to 35 years by 2020) will create a shortfall of workforce, while the needs of their populations for services will increase along with economic growth. Action taken by the developed countries such as increase in the retirement age, higher participation of women in the workforce, more automation and increased immigration will not be enough to bridge the shortfall.

Thus, the developed world will be forced to look to developing countries such as India to meet this demand and India will be well positioned to meet this through its large professional resource base which has been globally recognised for the quality of its managerial and technical talent.

India can avail itself of this opportunity either remotely (that is, professionals doing jobs for other countries) or by importing customers and servicing them.

According to these experts, the opportunity for remote servicing will be in various fields and will not be restricted to IT services. Already, foreign companies have tapped India's managerial and technical talent in sectors such as pharmaceuticals, health care, engineering, automotive, education and agro chemicals. Besides, opportunities to service customers in India will be available in the fields of education, healthcare and tourism.

The expert group has also estimated that the size and opportunity that will accrue to India will depend on the rate of growth of the global economy and on the intensity of action taken by India to capture its due share. Estimates of employment creation range from 20 million to 72 million additional jobs annually by 2020 and income from $140 billions to $365 billions.

Another point highlighted by the group is that the additional employment opportunities could be created without huge investments. For this, action will be needed on four fronts — strengthening professional education and vocational training, improving connectivity and infrastructure, particularly telecom and civil aviation, strengthening leisure and medical tourism infrastructure and marketing India as the world's best source for services.

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