“I don’t think job creation itself is an issue. What we’re focused on is the quality of jobs being created,” he said. “There’s evidence, whether from the unemployment rate, registrations with the Employee Provident Fund, or private sector job indices that jobs are being created. But the real question is about the quality of those jobs, which is ultimately more important.”
Addressing concerns over India’s unemployment metrics, he said that rural job figures reflect a shift toward self-employment and income-generating activities, rather than merely unpaid work. He talked about changes in rural employment dynamics.
“People say unemployment is lower because we are counting agricultural employment,” he added. “That’s partially true. It’s statistically true. But however, the jobs that are being created in rural India are also now people working on their own, not in unpaid jobs, but generating their own incomes, etc., and participating in family enterprises. I wouldn’t consider that as disguised unemployment.“
As for inequality, financial inclusion has led to some progress toward equality and referring to the Price 360 Consumer Survey, Nageswaran said that India’s Gini coefficient, a measure of income distribution, has actually compressed since COVID-19, suggesting progress toward more equitable wealth distribution. This he said has been supported by increased stock market participation among low-income groups.On, AI’s impact on jobs, he said compared to many emerging economies, India appears well-positioned to leverage AI, thanks to its vast pool of skilled labor and the advanced work of Indian software companies and global capability centers. “ India appears better placed than many to take advantage of the AI. It has to be done in a manner that is socially sustainable and socially stable,” he said.” And that is where the challenge lies more with the private sector than with the government.”