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Time of India
5 days ago
- Business
- Time of India
Jobs push needs skilling: Economic policy think-tank NCAER urges investment in training, says 13% job gain possible by 2030
AI image NEW DELHI: India can boost employment in labour-intensive sectors by over 13% by 2030 through targeted investment in formal skilling, according to a paper by the National Council of Applied Economic Research (NCAER). The study argues for a multi-pronged policy push to improve workforce quality and bridge the country's employment gap. The paper, titled 'The Landscape of Employment in India: Pathways to Jobs', highlights the critical role of skilled labour in accelerating job creation, particularly in manufacturing and services. 'On the supply side, we show that increasing the share of skilled workforce by 12 percentage points through investment in formal skilling could lead to more than a 13 per cent increase in employment in labour intensive sectors by 2030,' the paper said, quoted PTI. Labour-intensive industries currently account for a significant share of employment—44.1% of manufacturing jobs and 54.2% of services sector employment, the paper noted. 'Our demand-side simulations indicate that we can significantly bridge the employment gap by increasing the size of the manufacturing and services sectors, particularly through a focus on labour-intensive industries therein,' it added. The paper's author, Farzana Afridi, emphasised the need for a 'multi-pronged approach' to enhance production capacity and stimulate job creation, including higher government expenditure, tax cuts, and domestic demand stimulation. While analysing government initiatives, the paper cited a mismatch in the Production-Linked Incentive (PLI) scheme, pointing out that although it focuses on high-skilled, high-value sectors, the most jobs have been created in food processing and pharmaceuticals. 'This reflects a mismatch between budgetary allocation under PLI and potential for employment creation,' the paper said. To maximise gains, the report recommends adopting global best practices, implementing national quality standards, and revamping education systems to improve human capital. It also suggests embedding digital literacy, ICT skills, and soft skills into vocational training to enhance employability. The study referenced the Future of Jobs Report 2025, which estimates that 63% of India's workforce will need reskilling or upskilling by 2030 to stay competitive. 'Improving training quality, along with increasing the share of formally trained workers, can lead to higher employment gains,' the paper concluded. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
6 days ago
- Business
- Time of India
India can create 35 crore jobs by 2030, only if it fixes this problem
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India has the potential to employ up to 35 crore workers in manufacturing and services sectors by 2030, but this will require a major push in skilling initiatives and investment, according to a new study by the National Council of Applied Economic Research (NCAER).The study, titled "Pathways to Jobs", led by economist Farzana Afridi, highlights that while the country's labour force has grown by 9 crore since 2017-18, only 6 crore new jobs have been created during the same period. A large share of future employment—nearly 28 crore jobs—is projected to come from the services report underscores that labour-intensive investments in both manufacturing and services could double overall employment, thanks to inter-sectoral linkages. However, it also notes that employment growth is being constrained by a stagnant manufacturing sector, declining labour intensity, and a shortage of skilled workers."The share of the workforce in agriculture has declined, but manufacturing has not picked up the slack," the report said, adding that labour intensity of production is falling, complicating efforts to absorb the expanding there has been some progress—particularly in the rise of high-skill employment in the services sector—the skills gap remains wide. In 2018, 92% of workers lacked training; by 2024, that number had dropped to 65%, but still, only 4% of workers had formal tackle this challenge, the economists suggest expanding vocational education and allowing students to choose between academic and skills-based tracks. They also recommend macro-level policy changes including higher public spending, tax cuts, investment incentives, and eased labour regulations to stimulate job inputs from ToI
The Print
23-06-2025
- Business
- The Print
Assam is wary of digital payments. It's stalling the growth of MSMEs
According to a recent survey conducted by the National Council of Applied Economic Research (NCAER) for the Directorate of Economics and Statistics (DES), Assam, nearly 87 per cent of MSMEs in the state have adopted at least one form of digital payment. This is promising. Assam, like many other states, has witnessed a quiet but notable shift in MSMEs, particularly in the adoption of digital payment systems. From small roadside vendors to urban retail shops, the signs of digital transformation are now visible across the state. QR codes and UPI-based payments are no longer rare. They are part of the new normal. The micro, small, and medium enterprise or MSME sector has long been recognised as a crucial pillar of the Indian economy. Known for its ability to create employment with minimal capital and drive inclusive growth, the sector contributes significantly to local livelihoods and national development. Among medium enterprises, the adoption rate stands at an impressive 95.5 per cent. Small enterprises report an adoption rate of 87.5 per cent, while micro enterprises follow closely at 86.7 per cent. These figures signal a high level of digital readiness and a willingness among entrepreneurs to embrace change. However, a closer examination of transaction data reveals a paradox. While the adoption is high, actual use of digital modes of payment remains relatively low. The NCAER survey shows that only about 31.3 per cent of total transactions for micro enterprises are conducted digitally. Small enterprises fare better, with 51.47 per cent of total transactions being digital, and medium enterprises lead with 76.57 per cent. This wide gap between the adoption and active use of digital payment systems tells a larger story—one where the missing link is not the business owner, but the customer. Why customers don't pay digitally The reality on the ground is that even though MSMEs have installed digital infrastructure, a significant share of their customers still prefer to pay in cash. Whether it is a local grocery store, a tea stall, or a tailoring shop, the digital payment option is often available but rarely used. This reluctance among customers stems from a combination of behavioural, technological, and cultural factors. For many people, particularly in tier-3 towns and rural areas, cash remains a deeply embedded mode of payment. It feels more tangible and trustworthy than a digital transaction that takes place on a screen. Another important barrier is digital literacy. Many customers, especially the elderly or those with limited education, find mobile payment apps difficult to navigate. Others fear fraud or worry that if something goes wrong with the transaction, there is no clear route for recovery. In some cases, customers believe that using cash gives them more flexibility or helps them manage their spending better. This gap between the availability of digital options and their actual use is not just a technological issue. It has far-reaching implications for the MSME ecosystem. Digital payments create financial records that are crucial for accessing credit, applying for government schemes, or building business credibility. Without a strong history of digital transactions, many small businesses remain outside the formal financial system. This makes it harder for them to grow, scale up, or survive during economic shocks. In a region like Assam, where MSMEs are central to employment and income generation, this disconnect could hold back broader development. Also read: Maruti, Kia to Hyundai – why automakers are turning to trains to transport cars Bring MSMEs in digital mainstream It is also worth noting that the Northeast has been identified as a key focus area for India's future growth. Described by Prime Minister Modi as the 'Ashta Lakshmi'—a potential source for the country's eightfold prosperity—the region is expected to play an important role in national progress. For this vision to become a reality, the MSME sector in Assam and neighbouring states must be brought fully into the digital mainstream. This will not happen if digital readiness is limited to business owners alone. Customers must also become active participants in the digital economy. So far, most policy interventions have focused on the supply side—on helping MSMEs adopt digital tools, install QR codes, and attend training sessions. These efforts have delivered encouraging results. But the next phase must address the demand side. There is a need to invest in customer awareness, trust-building, and habit formation. People must be shown that digital payments can be easy, safe, and rewarding. Campaigns in local languages, community-based outreach, and visible grievance redressal systems can all help build public confidence. Above all, digital financial literacy must be treated as a public good—something that empowers citizens and strengthens the economy. MSMEs in Assam have taken an important step toward a digital future. They have embraced technology and demonstrated their willingness to evolve. But unless customers also make this shift, the benefits of digital transformation will remain limited. A truly digital economy cannot be built by businesses alone. It requires customers who are informed, confident, and willing to adopt new behaviours. Every stakeholder—from governments and banks to fintech companies and civil society—must focus on turning digital payments into a habit. The groundwork has been laid, and the opportunity is clear. It is only a matter of bringing the customer on board. Palash Baruah is a fellow at the National Council of Applied Economic Research (NCAER), Delhi. He tweets @DrPalashBaruah. Poonam Munjal is a professor at NCAER. She tweets @poonam_munjal. Views are personal. (Edited by Prasanna Bachchhav)
Time of India
25-04-2025
- Business
- Time of India
India's Business Confidence inches up to 139.3 in Q4: NCAER
NEW DELHI: India's Business Confidence Index (BCI) stayed strong in the fourth quarter of FY2024-25, indicating that businesses remain optimistic about the country's economic trajectory, according to the National Council of Applied Economic Research ( NCAER ). The index inched up to 139.3, slightly higher than 138.4 in the previous quarter and 138.2 in the same period last year, pointing to steady economic activity, albeit at a moderated pace. The BCI is based on four key components: Expectations of overall economic conditions over the next six months Expectations of a firm's own financial position over the next six months Assessment of the current investment climate Present capacity utilisation being close to or above the optimal level In Q4, over 50% of respondents remained optimistic across all four indicators, although the responses showed mixed trends when compared to the previous quarter. The share of firms expecting improvement in overall economic conditions over the next six months dipped slightly from 66.3% in Q3 to 64.7% in Q4. Expectations about their own financial position remained nearly unchanged, with 59.2% of firms expressing a positive outlook in Q4, compared to 59.3% in Q3. Despite these minor fluctuations, the sustained level of confidence underscores that businesses continue to perceive the macroeconomic environment as stable and supportive. Export sentiments decreased to 57.8 per cent, while import expectations rose to 46.1 per cent. Pre-tax profit optimism remained strong at 65.2 per cent, the report said. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
