What's Happening?
India has seen significant job growth driven by self-employment over the past six years, according to HSBC Bank's Employment Trends in India report. Self-employment numbers surged from 23.9 crore in FY18
to 35.8 million in FY24, with a healthy annual CAGR of 7%. This growth outpaces salaried jobs and casual labor, which have seen marginal increases. The rise in self-employment is linked to an increase in the labor force participation rate, which grew from 53% in FY18 to 64.3% in FY24. The report highlights the central role of self-employment in India's employment landscape, reshaping it away from farm roles.
Why It's Important?
The shift towards self-employment in India reflects broader economic and social changes, including increased female participation in the workforce. This trend suggests a growing preference for self-employment due to limited availability of wage-based jobs. The rise in self-employment is significant for India's economic development, as it indicates a shift towards more entrepreneurial and independent work models. It also highlights the need for policies that support self-employed individuals, particularly women and younger job seekers. The growth in self-employment may influence India's economic strategies and labor market policies.
