According to a new NCAER study the rising investment in textiles, apparel and hospitality could lift national employment by 2030. It outlined how these sectors may strengthen job growth as India evaluates labour participation challenges. The report released this year, highlighted the need for targeted actions to support faster expansion.
What changed according to NCAER study?
The report also projected that moderate expansion in manufacturing and services could increase employment in textiles, garments and related fields by 53% by 2030. It estimated a 79% rise in trade, hotel and similar services over the same period, based on current investment flows.
Impact on workers and sectoral jobs
The study noted that overall economic output improved in recent years, yet jobs quality lagged because self-employment, mainly in agriculture, absorbed most of the workforce. Salaried work did not keep pace, leaving gaps in stable employment opportunities across expanding sectors.
How the system can support job growth
NCAER called for a coordinated strategy that links demand-side and supply-side measures to increase labour absorption. It recommended stronger vocational training networks, credit portability that enables students to shift institutions, deeper industry collaboration and improved training quality as part of a long-term skills framework
India’s labour force participation rate remains near 50%, which the report said is low relative to countries with similar income levels. It identified the informal sector’s dominance as a structural barrier that future employment planning must address through measurable reforms.
