BJP TODAY

May 1--15, 2003 - Vol. 12, No. 09

Blue print for 40 million jobs by 2020

An expert group of economists and industrialists has worked out a blueprint to take advantage of India's growing and young population to create 40 million new jobs by 2020 which could add up to $200 billions to the country's gross domestic product (GDP).

Headed by the Planning Commission member, N.K. Singh, and comprising a number of economists and industrialists, this strategic group was set up by the All-India Management Association (AIMA). The Boston Consulting Group assisted the team in preparing its report, which was presented to the Prime Minister, Atal Behari Vajpayee, on April 17.

The essence of the report is that India's opportunity lies in the changing demographics of the world, coupled with the growth of service economies in the developed countries. Ageing populations and reducing birth rates in almost all developed countries (and also in China which is estimated to have a 10 million deficit in population in the working age group of 19 to 35 years by 2020) will create a shortfall of workforce, while the needs of their populations for services will increase along with economic growth. Action taken by the developed countries such as increase in the retirement age, higher participation of women in the workforce, more automation and increased immigration will not be enough to bridge the shortfall.

Thus, the developed world will be forced to look to developing countries such as India to meet this demand and India will be well positioned to meet this through its large professional resource base which has been globally recognised for the quality of its managerial and technical talent.

India can avail itself of this opportunity either remotely (that is, professionals doing jobs for other countries) or by importing customers and servicing them.

(Courtsey, The Hindu)