India Needs Human Capital for Growth: HUL Chairman

New Delhi, Jun 21 (PTI) India is well poised to leapfrog and become one of the world's leading economies but should focus on building human capital to realise the nation's growth potential, HUL Chairman Nitin Paranjpe said on Friday while addressing the AGM of the leading FMCG maker.

India's young and growing working-age population could prove to be the country's greatest asset in its future growth journey, he said, adding that thoughtful nurturing and development can unlock incredible rewards.

The country has to ensure that it not only progresses economically but also on social indices, he said in his speech titled, 'Developing Human Capital for a Growing India'.

"India is well poised to leapfrog into the future and become one of the world's leading economies. Armed with technological prowess, innovative acumen, increasing affluence and growth-centric policies, the country is often referred to as the new land of opportunities," said Paranjpe.

To leverage these opportunities in India and realise the nation's growth potential, it will need a single-minded focus on building human capital.

"While in the last decade, India's growth has primarily been productivity-led, going forward, we will need to ensure that we create meaningful employment and livelihood opportunities for the millions entering the workforce each year," said Paranjpe.

He further added to accelerate employment generation, there is also need to incentivise sectors with higher job elasticity.

Projections indicate that over the next decade, India will need to create 90 million non-farm jobs to both, manage the inevitable migration of labour from agriculture, and to provide meaningful employment opportunities to the people entering the working-age population.

"This is not easy and will need concerted and systemic action with particular focus on sectors that have a high employment elasticity," he said.

In the coming decade, India's service sector will present a potential for growth and employment generation.

"Other industries that present employment growth opportunities include health and hospitality, consumer retail services, global capability centres and e-commerce. Importantly, the MSME sector needs to play a bigger role," said Pranjape.

Employment generated by MSMEs in most developed nations is over 60 per cent, while in India, it is about 45 per cent and will need to tap the potential of these sectors, he said.

He added that India accelerates on its journey towards a USD 10-trillion economy, however, it has to ensure that no one is left behind.

"We have to ensure that we not only progress on economic but also on social indices," he said, adding, "We have to create an India where every child receives the education they deserve and a chance at creating the livelihood they dream of.