India struggles to boost formal-sector jobs, with 25.7% in 2023, the lowest in 18 years. Informal sector dominates the workforce.
In 2023, the informal sector employed over 300 million, while the formal sector remained under 100 million, showing a stark imbalance.
Citi estimates India needs 12 million new jobs annually. At 7% growth, only 8-9 million jobs can be created, falling short by 3-4 million.
Youth unemployment in India is over 40% for ages 20-24, with a general jobless rate at 9.2%, highlighting a severe job market issue.
Despite contributing less than 20% to GDP, agriculture employs 46% of India's workforce, showing a mismatch in job distribution.
Over half of India's 582 million workers are self-employed, with only 21% having salaried jobs, indicating a reliance on informal work.