Part 3 of 8 part series – exploring India’s unstoppable growth and the challenges it must navigate

Can Infrastructure Bridge India’s Employment Gap?

India’s economy is projected to grow at 6.5-7% annually through 2027, yet the specter of jobless growth looms large. Despite robust GDP gains, employment generation remains sluggish, with unemployment rates hovering around 7-8% (CMIE, 2025). As automation and skill mismatches sideline millions, the government’s policy pushthrough massive infrastructure investments—such as the ₹100 lakh crore PM Gati Shakti plan—aims to create jobs and drive inclusive growth. But can roads, railways, and smart cities bridge India’s employment gap in the next two years? This article examines whether infrastructure can deliver sustainable jobs in a rapidly evolving economy, or if structural challenges like automation, skill deficits, and regional disparities will limit its impact. We explore India’s unique context, recent policies, and the path ahead for 2025-2027.

What is Jobless Growth in India? 

India’s economy has grown impressively, but job creation hasn’t kept pace. Between 2014 and 2024, GDP growth averaged 6-7%, while employment grew at just 1-2% annually (ILO, PLFS data). Key drivers include:

The Stakes 

With a youth bulge (65% of the population under 35), India faces a demographic dividend—or disaster. Unemployment, especially among rural youth (9.1%, CMIE 2025), fuels inequality and social unrest. The government’s response? A massive infrastructure push to create jobs and stimulate demand by 2027.

The Infrastructure Push – A Job Creation Engine?

Why Infrastructure? Infrastructure is India’s go-to solution for job creation due to its scale and multiplier effects. The PM Gati Shakti National Master Plan (2021-ongoing) targets ₹100 lakh crore in investments by 2030, with significant progress expected by 2027. Key features include:

Key Projects (2025-2027)

Challenges in Bridging the Employment Gap

Why Infrastructure May Not Suffice Despite its promise, infrastructure faces hurdles in addressing India’s jobless growth by 2027:

• Temporary Jobs: Construction jobs often last 1-2 years, leaving workers jobless post-project.
• Skill Gaps: Smart infrastructure (e.g., 5G networks, smart grids) requires specialized skills, excluding 60% of India’s unskilled workforce (PLFS, 2024).
• Regional Disparities: Urban-centric projects like metro systems neglect rural unemployment (12% in rural areas, CMIE 2025).
• Automation in Construction: Drones and precast technology reduce labor needs by 20-30% (FICCI, 2024).

Structural Issues

• Informal Economy: Most infrastructure jobs are informal, lacking benefits or stability.
• Fiscal Pressures: India’s fiscal deficit (4.9% of GDP, 2025) limits sustained investment.
• Implementation Gaps: Delays and cost overruns (e.g., Mumbai-Ahmedabad Bullet Train) reduce job creation efficiency.

A Roadmap for 2025-2027

To make infrastructure a true employment engine by 2027, India must adopt a strategic approach:

Conclusion

India’s infrastructure push, led by PM Gati Shakti and green energy initiatives, holds immense potential to combat jobless growth by 2027. Projects like Bharatmala and smart cities can create millions of jobs while boosting economic connectivity. However, temporary jobs, skill mismatches, and regional disparities threaten to limit impact. To bridge the employment gap, India must integrate skill training, prioritize labor-intensive projects, and ensure rural inclusion. With a projected 7% GDP growth and a youthful workforce, the next two years are critical. By combining infrastructure with robust governance, skill development, and MSME support, India can turn its demographic dividend into a reality. Infrastructure alone isn’t a panacea, but as part of a broader strategy, it can pave the way for inclusive, sustainable employment.