The United Nations Development Programme (UNDP) is joining forces with the Indian government to enhance domestic manufacturing by collaborating with private sector companies, according to Kanni Wignaraja, Assistant Secretary-General and head of Asia-Pacific for UNDP. The partnership aims to stimulate innovation, entrepreneurship, and upskilling, leading to job creation within the manufacturing sector.
UNDP will also work alongside NITI Aayog to promote sustainable development across the country. “We are committed to supporting the scaling up of institutional establishments meant to fast-track sustainable development,” Wignaraja noted. The collaboration seeks to address the need for rapid progress in sustainable practices, while simultaneously focusing on boosting the manufacturing sector, which currently lags behind the government’s goal of increasing its share in the economy from the current 16-17% to 25%.
India’s economic growth over the past two decades has been predominantly driven by services such as information technology, banking, and finance, leaving manufacturing’s share in employment and output relatively stagnant. The 2023-24 Economic Survey indicates that India needs to generate approximately 7.85 million non-farm jobs annually to keep pace with the expanding workforce. However, job creation continues to be a challenge, with the Centre for Monitoring Indian Economy recently reporting a rise in unemployment from 7% in May to nearly 9% in June.
Wignaraja highlighted the importance of sustainable job creation, particularly in green sectors, as India progresses towards its 2070 net-zero carbon emissions target. “Renewables, technology—these are new areas where there is a bump and where you can find well-paid quality jobs. The question then is in the older traditional sectors… If I take agriculture in India, there is a net gain. Is that at the level of good pay, quality jobs? And if it isn’t, how does one make that also (of good pay and quality)? Is it by modernizing agriculture?” she remarked.
During Wignaraja’s visit to India from October 3 to 8, she met with key government officials, including NITI Aayog’s Vice Chairperson, Suman Bery, to discuss strategies for inclusive growth. The UNDP plans to implement skilling programs that will equip workers, including women and marginalized groups, with the skills needed for emerging technologies and modern manufacturing processes.
India also faces a significant gender disparity in the formal labor market, with only 25.2% of urban women participating in the workforce. Wignaraja emphasized the importance of expanding manufacturing to provide more job opportunities, especially for women, who currently have higher labor force participation in agriculture and services. “From a large absorption in agriculture, (India has) almost done a leapfrog to the service tertiary sector, leaving behind a gap in manufacturing. In some areas, there is almost a return to saying, where we can grow the manufacturing sector that can absorb new labour, particularly to incentivize women’s labour force participation,” she said.
She added that scaling up manufacturing jobs will not be feasible without private sector involvement, stating, “Growth in manufacturing jobs by UNDP alone is not possible; this will be done with the help of the private sector, and we are certainly looking at the policy frameworks, regulation, and what incentivizes the growth in new manufacturing areas.”
The initiative aims to address job shortages and foster a more inclusive labor market while aligning with India’s broader economic and environmental objectives.
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