Job Creation in India Increases by 36% Over the Last Decade

"Employment under the Modi Government Has Grown by 36%, Compared to Just 6% During the UPA Regime"

Employment across agriculture, manufacturing, and services sectors has seen a notable rise during Prime Minister Narendra Modi's tenure, with a significant contrast to the previous decade under the Congress-led UPA government, according to data compiled by the Reserve Bank of India (RBI). Between 2014 and 2024, 17.9 crore additional jobs were created under Modi's leadership, compared to just 2.9 crore jobs during the UPA government from 2004 to 2014.

Employment during the Modi government surged by 36%, while under the UPA, it grew by only 6%. The data reveals that in the 2023-24 period, 4.6 crore jobs were added, with the total number of employed individuals rising from 596.7 million in 2022-23 to 643.3 million by the end of the financial year on March 31, 2024.

The RBI’s KLEMS database, which covers key production inputs such as Capital (K), Labour (L), Energy (E), Materials (M), and Services (S), highlights substantial sectoral growth under Modi. The agriculture sector grew by 19% under his government, while it had declined by 16% during the UPA period. The manufacturing sector expanded by 15% from 2014-2024, compared to a mere 6% growth in the previous decade. Similarly, the services sector posted an impressive 36% growth under Modi, surpassing the 25% growth during the UPA regime.

For the first time, the RBI has provided a provisional estimate of the economy's productivity for FY24, reflecting an increase in the quality of labor, driven by the education levels of the workforce. The data indicates a decline in the unemployment ratio, which dropped to 1.4% in FY24 from 2.2% in FY18.

The services sector, excluding construction, is now absorbing most of the workforce transitioning from agriculture, a shift from the 2000-2011 period when the construction sector played a larger role in job creation.

Additionally, high-skilled sectors like financial and business services, education, and healthcare are increasingly attracting educated workers, further demonstrating the positive shift in employment quality.