India created 12.5 cr jobs during FY14-23, compared to only 2.9 cr during FY04-14: SBI study

Total employment reported by MSMEs registered with the MSME Ministry has crossed the 20-crore mark

July 11, 2024

SBI data revels that job creation in Indian economy soar over 400% in 2014-23

According to a study by the State Bank of India (SBI), the Indian economy saw the creation of 12.5 crore jobs during the financial years 2014-23, marking a significant increase from the 2.9 crore jobs generated during 2004-14—a more than four-fold rise.

The total employment reported by Micro, Small, and Medium Enterprises (MSMEs) registered with the MSME Ministry has crossed the 20-crore mark, data from the Udyam registration portal shows.

“Even if we exclude Agriculture, the total number of jobs created in Manufacturing and Services is at 8.9 crores during FY14-FY23 and 6.6 crores during FY04-FY14,” according to the report prepared by SBI’s Economic Research Department based on RBI data.

As of July 4, 4.68 crore Udyam-registered MSMEs reported 20.19 crore jobs, including 2.32 crore jobs by GST-exempted informal micro-enterprises, up by 66 percent from 12.1 crore jobs in July last year, showed ERD’s analysis.

“One interesting fact emerges by comparing EPFO (Employee Provident Fund Organisation) data with RBI’s KLEMS (Capital/K, Labour/L, Energy/E, Material/M and Services/S) data. When we took the share of EPFO with KLEMS, the FY24 share at 28 percent was drastically lower than the average share of the 5 years (FY19-FY23) at 51 percent. As EPFO data capture primarily low-income jobs, the declining share is quite encouraging and indicates that possibly better-paid jobs are getting available in the economy,” said Soumya Kanti Ghosh, SBI’s Group Chief Economic Advisor.

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