India’s demographics are favorable for economic growth, with a projected increase of 179 million working-age people by 2045. This is particularly significant as other countries, including China, are facing unfavorable demographic trends.
Currently, India’s working-age population is around 961 million, with unemployment at a five-year low. The proportion of working-age individuals (25-64) within the total population is increasing, which is positive for savings and investments.
The increasing participation of women in the workforce is a key driver of labor force expansion. While labor force addition is projected to slow to 6 million by 2030, this gap is expected to be filled by a shift from agriculture jobs.
Recent data from the Ministry of Statistics indicates a rise in labor force participation rates (LFPR) in urban areas, with both overall and female LFPR increasing. The Worker Population Ratio (WPR) also showed an increase in urban areas.
Over the last ten years, employment in India has increased significantly, with a total increase of approximately 170 million.
