SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 13 Mar, 2024  

Rupee.9.Thmb.jpg Strong demographic trend a structural positive for India: Morgan Stanley

   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
IANS | 12 Mar, 2024
India’s demographic trend of a younger workforce positions it positively as most large economies face shrinking working-age populations and tight labour markets, global brokerage, Morgan Stanley said.

Per UN estimates, India's working-age population will continue to grow until 2037, with age dependency falling until 2032, and India will account for 21 per cent of the incremental increase in global working-age population in the next 10 years.

“As such, we envisage that over the next 10 years India's economy will be driven by manufacturing, exports, and capex with implications for employment generation,” Morgan Stanley said.

Over the past 4 years, policy reform momentum has moved in that direction wherein policymakers have taken steps to reorient India's growth model with a push for capex-and manufacturing-led growth. This move will have implications for the way India's labour force is employed.

Unleashing labour productivity potentially creates further tailwinds for India's growth outlook and the economy's competitiveness, Morgan Stanley said.

India's labour force is characterised by a high degree of informality with 89.1 per cent of labour force in the informal sector -- exhibiting the highest among key economies. Further, in terms of sectors, agriculture continues to dominate the labour force with 45.8 per cent share in employment.

Currently India's wage growth (manufacturing wage) remains among the lowest in the region, and while labour productivity has improved over time, it continues to remain weaker than most EMs. As such, as the economy formalises at a faster pace in the coming decade and share of manufacturing and services increases further in the labour force, labour productivity should see a meaningful uplift, Morgan Stanley said.

Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
PM Modi's recent US visit to redefine India-US bilateral relations
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter