India’s startup ecosystem is poised for significant growth as the country works towards boosting economic growth and entrepreneurship. However, the CEO of one of the largest recruitment firms in the country warns that overall unemployment rates continue to climb.
According to the Centre for Monitoring Indian Economy, India’s unemployment rate rose to 8.1% in April, up from 7.4% the previous month. Despite this, the number of startups in India jumped 37% in April compared to a year ago, leading to a 14% increase in the number of jobs from startups, as per the latest employment trends data from Foundit.
The report highlights that the IT services sector had the most job opportunities, with more than 50% of new startup jobs catering to fresh university graduates. Chandra Garisa, CEO of Foundit, attributes this growth to the “absolute boom in startups coming out of India” in recent years, with startups emerging in every sector.
Garisa emphasizes that India has always had a “quality of talent” and that the access to capital and the creation of an ecosystem between government bodies and investors have given India’s startup space a significant boost. However, he notes that while India’s push to be self-sufficient in manufacturing and IT is providing young people with more career routes and choices, more needs to be done to combat India’s high youth unemployment.
The survey shows that across all of India, the number of jobs in the manufacturing sector saw the highest surge, jumping 31%. This growth is largely driven by a boost in investment inflows in the automotive, chemical, pharmaceutical, and food processing industries. Garisa attributes this to the fact that “more global companies are adopting a China plus one strategy,” referring to the Biden administration’s encouragement of American companies to move electronics and technology manufacturing operations out of China and into friendlier countries in Asia-Pacific, such as India.
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