A critical policy challenge facing India today is providing employment to its burgeoning working age population. The scale of this challenge is immense. According to one estimate India must create over a million jobs every month.
This project aims to understand the type of infrastructure needed across different regions in order to catalyse economic activity and create jobs. Our purpose is to estimate the overall economic effects of infrastructure investment by answering the central question: what type of infrastructure, in which locations, would catalyse job creation?
The study focuses primarily on 18 districts across states that show potential for growth. The project will involve conducting a firm-level survey in these districts to understand infrastructural constraints enterprises face in operating, scaling, and hiring more people. In addition, the study will use inputs from experts on infrastructure, regional development, and economic sectors and focus group discussions to identify potential areas and sectors for employment generation and the role of infrastructure in facilitating this.
This project is part of IDFC Institute’s research pillar on Transitions, under which we study the multiple dimensions of India’s transition from rural to urban, informal to formal, farm to non-farm as we move from a low- to high- productivity economy.
The research outcomes of this project are twofold. We seek to have a list of priority infrastructure projects and to create a diagnostic tool or methodology for policymakers to make decisions on infrastructure investment based on their employment-generation potential.