1/3rd of the world to seek jobs in India

The Indian Central government imposes over 55 labour laws and the States another 150 or more. These could be the biggest challenge to an economy set to house one third of the world's workforce over the next decade.

Yes, you read that right! As today's chart shows (as per the International Labour Organisation), the number of Indians in the workforce will increase by almost 80 m over the next decade. But if more women join the workforce, this figure could also swell to 110 m. Then, three out of every ten extra workers in the world will be Indian by 2020.

40 m of the incremental workforce in India may be absorbed by its service sector. But, what about the rest? India's manufacturing contributed 16% of the GDP in FY10. For the first time ever it outdid the share of agriculture. However, its contribution to employment is least impressive at 12% of total workforce.

Extensive labour laws that discourage hiring temporary workers have forced manufacturers to opt for technology. Thus rendering thousands jobless. Even the most labour intensive sectors such as textile and jewelry making have halved their labour requirement.

China's workforce is becoming older and more expensive. The outsourcing contracts from the developed economies will soon look to exit the dragon nation. Only India has the numbers to match it. However, this opportunity can turn into a catastrophe unless the labour laws are modified to accommodate more employment.

Sikkim also seems to move on the same path. Many of the entreprenurs here have stopped expanding their businesses for this simple reason.