The Economic Survey 2023-24 found that the Indian Corporate sector’s profitability has outperformed the gross addition to employment and increase in employees’ compensation.
The survey indicates that the corporate sector’s profit before taxes has risen threefold from FY20 to FY23, but hiring and compensation have not grown commensurately. For the government, employment mainly relies on the private sector and calls on firms to do more to employ and remunerate employees adequately.
The survey also revealed that state governments matter a lot in terms of economic growth, employment generation, and efficiency. It provided for a ‘three-way partnership of the Centre, States, and the private sector’ to respond to Indians ‘higher and rising expectations, aimed at creating ‘Viksit Bharat’ by 2047.
Regarding the employment situation, crises such as bad debts and COVID-19 mortalities, rather than structural issues, are remarkable components that have shaped the employment situation in the country. Above all, the survey revealed the tendencies of geopolitics, such as the emergence of Artificial Intelligence, to prevent India from becoming a developed country.
The Economic Survey’s revelations show that the strategy for fostering economic growth must be better thought out to include the employees at large.
