Importance of Ongoing Reforms
Continuing reforms is essential to maintain and accelerate India’s growth trajectory, creating more job opportunities.
States need to work closely with the Central government to implement reforms, especially in manufacturing and production.
Updating outdated labour laws and implementing new codes can attract investment and encourage businesses to grow, particularly in labor-intensive sectors.
A significant portion of the workforce is in agriculture, which contributes little to GDP.
Focusing on manufacturing and high-growth sectors is crucial.
Skilling as a Continuous Process
Only 4.4% of the youth (ages 15-29) are formally skilled, leading to a mismatch between available jobs and workforce skills.
Collaborations between industry and educational institutions are needed to create relevant curricula and provide on-the-job training.
Skilling should be a continuous process that adapts to changing job market demands, not a one-time effort.
The New Education Policy emphasizes foundational and cognitive skills, but it needs regular updates to remain effective.
Impact of AI/ML on India’s Economy
AI and machine learning (ML) can automate low-skill, repetitive tasks, posing risks to those jobs.
Despite automation, there will always be a need for human intervention in various roles.
The AI/ML market is projected to grow significantly, presenting opportunities for innovation and employment.
India has a large talent pool in AI/ML, but there's a 51% gap between demand and supply for skilled workers in this field, which is expected to widen.
A comprehensive strategy that includes skilling, reforming labor laws, and leveraging AI/ML is essential to capitalize on India's demographic dividend for global benefit.
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