- The services sector employs fairly skilled people.
- India’s most abundant resource is unskilled labour.
- The service-led growth model has not provided employment to large unskilled population.
- This has led to a “jobless growth” phenomenon.
- 12 million people enter the Indian workforce each year, many low-skilled.
- The scale and nature of employment required for them can only be provided by low and semi-skilled manufacturing.
- This creates a challenge for India’s demographic dividend.