'India Inc wants fewer workers, not more': Devina Mehra sees danger for young workforce
Between 2008 and 2014, manufacturing consistently hovered between 17% and 17.5%. But two years ago, it dipped to 13.5% and has continued its downward slide.
- Aug 14, 2025,
- Updated Aug 14, 2025 7:23 AM IST
India’s manufacturing sector has plunged to its lowest share of GDP since 1967, triggering urgent concerns about job creation and long-term economic stability.
Devina Mehra, founder of First Global and author of Money, Myths and Mantras: The Ultimate Investment Guide, flagged the stark decline in a LinkedIn post, citing World Bank data showing manufacturing’s GDP contribution has fallen to just 12.6%—a figure not seen since 1967 and even lower than 1960 levels.
Between 2008 and 2014, manufacturing consistently hovered between 17% and 17.5%. But two years ago, it dipped to 13.5% and has continued its downward slide. "If we want our young people to become something other than delivery people, we need to focus here," Mehra warned.
She pointed to a structural issue in India's corporate landscape: “Most large corporations want to minimise, not maximize, employment.” She noted a decades-long trend where companies like Essar Steel and Bajaj Auto celebrated new plants for their minimal blue-collar workforce requirements.
Instead, India’s employment backbone has traditionally been its MSMEs—medium, small, and micro enterprises. But these job-generating engines have been sputtering. According to former Chief Statistician Dr. Pronab Sen, the number of MSMEs has declined by 10 million since 2016—a shortfall of 20 million when accounting for expected growth. That collapse has directly impacted employment, particularly in labor-intensive export sectors.
“The real employment generators… have gone out of business over the last several years,” Mehra stated, underscoring the vulnerability of MSMEs in a challenging economic climate.
Tourism, a potential employment driver outside of manufacturing, remains underdeveloped. Despite India's vast natural and cultural assets, Mehra notes the country struggles to deliver a “clean, safe, welcoming and reasonably priced tourism product,” lagging behind much smaller nations in visitor numbers.
With manufacturing and tourism underperforming, Mehra’s assessment poses a critical question: where will India’s jobs come from next?
India’s manufacturing sector has plunged to its lowest share of GDP since 1967, triggering urgent concerns about job creation and long-term economic stability.
Devina Mehra, founder of First Global and author of Money, Myths and Mantras: The Ultimate Investment Guide, flagged the stark decline in a LinkedIn post, citing World Bank data showing manufacturing’s GDP contribution has fallen to just 12.6%—a figure not seen since 1967 and even lower than 1960 levels.
Between 2008 and 2014, manufacturing consistently hovered between 17% and 17.5%. But two years ago, it dipped to 13.5% and has continued its downward slide. "If we want our young people to become something other than delivery people, we need to focus here," Mehra warned.
She pointed to a structural issue in India's corporate landscape: “Most large corporations want to minimise, not maximize, employment.” She noted a decades-long trend where companies like Essar Steel and Bajaj Auto celebrated new plants for their minimal blue-collar workforce requirements.
Instead, India’s employment backbone has traditionally been its MSMEs—medium, small, and micro enterprises. But these job-generating engines have been sputtering. According to former Chief Statistician Dr. Pronab Sen, the number of MSMEs has declined by 10 million since 2016—a shortfall of 20 million when accounting for expected growth. That collapse has directly impacted employment, particularly in labor-intensive export sectors.
“The real employment generators… have gone out of business over the last several years,” Mehra stated, underscoring the vulnerability of MSMEs in a challenging economic climate.
Tourism, a potential employment driver outside of manufacturing, remains underdeveloped. Despite India's vast natural and cultural assets, Mehra notes the country struggles to deliver a “clean, safe, welcoming and reasonably priced tourism product,” lagging behind much smaller nations in visitor numbers.
With manufacturing and tourism underperforming, Mehra’s assessment poses a critical question: where will India’s jobs come from next?