Changing Demographics and the Future of Jobs in India

The rising middle-class, higher proportion of young workers and increasing urbanization will impact the future of jobs in India for the coming decade. The Indian “global middle-class” which is expected to quadruple by 2020, will drive domestic consumption and thereby increase the quantum of jobs.

India’s small “global middle-class” at around 50 million people in 2015, or 5% of its population, is expected to grow steadily over the next decade, but by 2025, this “global middle-class” will become the largest, accounting for about 40% of all Indian consumption, up from about 26% in 2015.

The future of jobs in India

When significant numbers of people begin earning the equivalent of over US$10 per day, and enter the global middle-class bracket, their purchasing habits attract the attention of companies accustomed to supplying to middle-class markets in the developed world. The power of the sweet spot also produces a “middle-class effect”, where the size of the middle-class is directly proportionate to the rate of economic growth. Hitting the sweet-spot level accelerates growth, which, in turn, adds more people to the middle-class, producing a vicious circle.

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