23 June, 2010

India may boast of 25% of world's workforce by 2025: TeamLease Services

India can boast of a quarter of the world's workforce by 2025, provided the country harnesses the potential of its young and productive population. A conducive labour situation could also help push the nation's per capita income to a USD 4,100 (around Rs 1,87,554 at an exchange rate of Rs 45.74 per dollar) by 2025, according to the 'India Labour Report 2009', released in partnership with IIJT Education.

The report, however, stated that a radical reform of the country's labour market ecosystem (including labour demand, labour supply and labour laws) is required for converting individuals into productive people comprising the workforce.

"If we harness this dividend by 2025, India will not only have 25 per cent of the world's total workforce, but our per capita income will be USD 4,100," the report said. "This would rise to USD 9,802 in 2040 and USD 20,836 in 2050. This will finally put poverty in the museum it belongs," it added.

The report cautioned that the demographic dividend would become a disaster if India does not radically overhaul the labour ecosystem to enhance the productivity of the growing workforce.

The study has also ranked states on the basis of improvement in their labour ecosystems in terms of state efforts in various areas like education and training, infrastructure, governance and the legal/regulatory structure. "Aggregate labour ecosystem index shows the top three performers are Andhra Pradesh, Karnataka and Maharashtra and each has had significant improvements in index values and ranks," the report stated. Delhi and Gujarat have been ranked at fourth and fifth place respectively in the Labour Ecosystem rankings.