 "Jobs, Insurance, Irdai")
India will need to create jobs in proportion to the growth of the working-age population, RBI Deputy Governor M D Patra said on Wednesday.
It also has to enhance skills to increase participation of those in this age bracket, especially females in the labour force, Patra said in his address at Alumni conference of Indira Gandhi Institute of Development Research.
He said an institutional environment should be provided that enables work flexibility in tune with changing technologies and demand patterns. According to a United Nations report, India has become the most populous country in the world.
“There is a paradigm shift in thinking on the subject. Once considered a drag on development, a large population is now regarded as an asset and an opportunity in a world in which many countries are confronting aging and even population decline. By contrast, our population is young — the median age is 28 years. Every sixth working age (15-64 years) person in the world is an Indian,” Patra said.
The RBI deputy governor said the potential for boosting savings and investments considerably enhances India’s emergence as a future economic powerhouse in the world.
“We must prepare for donning this responsibility. In some ways, we have started. India is upgrading physical infrastructure — roads and airports being the most visible dimensions — to world class levels. We are on the cusp of a digital payments revolution. Yet, our most formidable challenges remain: only half of the existing working age population is part of the labour force,” he pointed out.
Furthermore, India’s female labour force participation is among the lowest in the world, even lower than that of low-income countries. They should be assured of the dignity of work and the sanctity of the workplace to enable participation in the workforce, he said.
