India cannot become developed economy by 2047 without boosting employment, says World Bank official

NT Correspondent

New Delhi/Washington: A senior World Bank official has stated that India would not achieve its target of becoming a developed economy by 2047 without implementing reforms to enhance employment, according to a report in the Financial Times on Tuesday.

Prime Minister Narendra Modi has repeatedly stressed India's aim to become a developed economy by 2047.

He had urged citizens in October to strive for this goal and achieve it by the time India marks its 100 years of independence.

However, Franziska Ohnsorge, the World Bank’s chief economist for South Asia, pointed out that reaching the 2047 target remains a distant prospect "in a no-reform scenario."

The World Bank, in a new report titled 'Jobs for Resilience,' released on Tuesday, highlighted that India experienced notably weak employment growth compared to other emerging markets and developing economies during the 2010s.

The report revealed that between 2000 and 2022, India saw a more significant decline in the employment ratio than any other South Asian country except Nepal.

The employment ratio indicates the proportion of the labor force currently employed relative to the total working-age population of a region.

"The report mentioned that 'Overall during 2000-’23, employment growth was well below the average working-age population growth and the employment ratio declined,'" Ohnsorge remarked, calling it a "missed opportunity."

She added, "It’s almost like the demographic dividend is being squandered."

In March, the International Labour Organisation and the Institute of Human Development highlighted in their 'India Employment Report 2024' that the share of unemployed youth in India's total unemployed population was 82.9%.

The report further noted that unemployment among youth, particularly those with a secondary level of education or higher, had intensified over time.

Last September, the United Nations projected that the proportion of elderly citizens in India would increase to 20% of the total population by 2050.