Bharat’s corporate sector has reported impressive financial performances and increased hiring, but employee salary growth has not kept pace, the government has highlighted in the Economic Survey for 2023-24.
The government asserted that job creation primarily occurs within the private sector, stating, “Financially, the corporate sector has experienced unprecedented success. A sample of over 33,000 companies revealed that between FY20 and FY23, profits before taxes nearly quadrupled. However, hiring and compensation growth did not match this trend. Companies must prioritise increasing hiring and worker compensation.”
The survey highlighted that several factors influencing economic growth, job creation, and productivity fall under the jurisdiction of State governments. It proposed a tripartite agreement between the Centre, States, and the private sector to meet the aspirations of Indians and achieve ‘Viksit Bharat’ by 2047.
Economic shocks, rather than structural issues, have impacted the employment landscape. The survey cited bad debts and the Covid pandemic as significant disruptions.
Comparing data from the Annual Survey of Unincorporated Enterprises for 2022-23 with the NSS 73rd round survey, it was found that overall employment in these enterprises decreased from 11.1 crore in 2015-16 to 10.96 crore.
The reduction in manufacturing jobs was offset by growth in trade and services, limiting the net job loss in unincorporated enterprises to around 16.45 lakh between these periods. Notably, there was a substantial increase in manufacturing jobs between 2021-22 and 2022-23.
Bharat endured two significant economic shocks: high corporate indebtedness and bad debts in the banking system, followed by the Covid pandemic. These events challenged the economy’s employment capabilities but did not structurally impair them.
The survey also addressed geopolitical challenges in Bharat’s journey towards becoming a developed nation by 2047, including the rise of Artificial Intelligence. The global environment has changed significantly since China’s rise from 1980 to 2015, with increased concerns over climate change and geopolitical tensions.
“Artificial Intelligence introduces uncertainty regarding its impact on workers across all skill levels. Overcoming these challenges requires a robust alliance between Union and State governments and the private sector,” the survey noted.
Presenting the Economic Survey in Parliament, Finance Minister Nirmala Sitharaman affirmed the Indian economy’s resilience amidst geopolitical challenges. “The Indian economy is on a strong wicket and stable footing, showing resilience in the face of geopolitical challenges. Post-Covid recovery has been consolidated with fiscal and monetary policies ensuring economic and financial stability,” the report concluded.
