New Delhi, March 12 (IANS) India’s demographic trend of a younger workforce positions it positively as most large economies face shrinking working-age populations and tight labour markets, global brokerage, Morgan Stanley said.
Per UN estimates, India’s working-age population will continue to grow until 2037, with age dependency falling until 2032, and India will account for 21 per cent of the incremental increase in global working-age population in the next 10 years.
“As such, we envisage that over the next 10 years India’s economy will be driven by manufacturing, exports, and capex with implications for employment generation,” Morgan Stanley said.
Over the past 4 years, policy reform momentum has moved in that direction wherein policymakers have taken steps to reorient India’s growth model with a push for capex-and manufacturing-led growth. This move will have implications for the way India’s labour force is employed.
Unleashing labour productivity potentially creates further tailwinds for India’s growth outlook and the economy’s competitiveness, Morgan Stanley said.
India’s labour force is characterised by a high degree of informality with 89.1 per cent of labour force in the informal sector — exhibiting the highest among key economies. Further, in terms of sectors, agriculture continues to dominate the labour force with 45.8 per cent share in employment.
Currently India’s wage growth (manufacturing wage) remains among the lowest in the region, and while labour productivity has improved over time, it continues to remain weaker than most EMs. As such, as the economy formalises at a faster pace in the coming decade and share of manufacturing and services increases further in the labour force, labour productivity should see a meaningful uplift, Morgan Stanley said.
–IANS
biz/san/uk
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.