Why manufacturing growth has not translated into broad-based employment

The Indian Express (UPSC Essentials) featured Dr Pushpendra Singh, Assistant Professor, Economics, K J Somaiya Institute of Management and Archana Singh, Assistant Professor, Gender & Economics, International Institute for Population Sciences in an article titled ‘Budget 2026 Why Manufacturing Growth Has Not Led to Job Creation in India’.

The article highlights how manufacturing’s share of GDP has stayed in the 14 to 17 percent range for decades while job creation continues to lag. Organised factories employed around 1.96 crore workers in 2023-24 while a large share remains in low productivity unorganised units.

It discusses how policy measures such as PLI have supported output & investment but generated limited employment. The piece emphasises the need for stronger skilling technology adoption and supply chain linkages especially for MSMEs.