5. Potential for Inclusive Growth in India

♤ Service sector is the major employer in India. this sector accounts for 68% of GDP and 30% of employment. Continued growth in domestic and export services is expected, and will be increasingly important in the face of uncertainty in the manufacturing sector.

♤ Manufacturing Sector: In face of automation, workers need to adapt to changing demand. India must develop an enhanced skills development framework. Such a framework should be accessible, driven by demand, linked to employment opportunities and enable individuals to quickly up-skill and re-skill.

♤ MSMEs: The adoption of digital technologies and emergence of digital platforms, such as in e-commerce and digital financial systems, are improving the business viability of microenterprises in India. In order to support inclusive growth among micro and small-sized firms, India must improve financial connectivity.

♤ Digital Economy: With increased digitization, new kinds of jobs will be created. It will create contract work and self-employment. Social benefits that are linked to employment should be accessible to individuals directly. Potential issues such as depressed wages, low productivity, and economic insecurity need to be managed through new policy frameworks.

♤ Formal Labour: It is imperative that India leverages digital technologies to bring workers into the formal labour force, connects individuals to social protection systems, and finds ways to effectively prepare people for a changing employment landscape.