A recent research report from the State Bank of India brought to the fore the tremendous growth in job creation in the Indian economy during the last two decades. Net 12.5 crore jobs were added between 2014-23. The number has been much higher than 2.9 crore generated during 2004-14.
According to an SBI report, prepared from RBI data by its Economic Research Department, during FY14-FY23 and FY04-FY14, the manufacturing and services sectors alone contributed to about 8.9 crore and 6.6 crore jobs respectively, alike in exclusion of agriculture.
Now, according to the Udyam registration website data, MSMEs have contributed more than 20 crores to the job market. Jobs, against 4.68 crores of Udyam-registered MSMEs, were 20.19 crores as of July 4. This was bolstered by informal micro enterprises with turnovers below the GST threshold where jobs jumped 66% compared to the year-ago to 2.32 crores.
Not only that, the study also makes some cross-tabulations for data from EPFO with RBI's KLEMS data, which bring out a significant shift. According to data from EPFO, mainly capturing low-income jobs, the share has come down to 28% in FY24 from an average of 51% seen during FY19-FY23. "SBI's Group Chief Economic Adviser, Soumya Kanti Ghosh, interprets it and construes the decline to represent accretion of better job quality in the economy as a whole.
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