New Delhi, April 20 -- India is staring at a troubling economic paradox. While political narratives tout resilience and growth, the ground reality for millions, especially the youth, tells a drastically different story-one of joblessness, shrinking savings, and dwindling consumer confidence. The latest data from the Centre for Monitoring Indian Economy (CMIE) reveals that unemployment among Indian youth has crossed 45 per cent, with the most affected being college graduates and postgraduates. This isn't just a number-it's a national emergency simmering beneath the surface. At the heart of this crisis lies a structural mismatch: the economy is simply not generating enough jobs to absorb the growing educated workforce. Degrees, once viewed as passports to stability and prosperity, now seem like weightless credentials in a shrinking job market. Particularly alarming is the decline in employment opportunities across traditionally robust sectors. Information technology, automobiles, and manufacturing-pillars of India's industrial and export strength-have not just frozen hiring but have also trimmed workforce numbers. Leading names in Indian corporate circles have quietly let go of thousands, citing cost cuts, global headwinds, and automation-led restructuring. This is not merely a phase. It reflects a deep-rooted malaise where technological shifts, policy gaps, and economic uncertainties are collectively squeezing India's demographic dividend into a liability. When even the so-called "future-proof " sectors like IT are pausing growth, the ripple effects on other areas of the economy are profound. From ancillary services to real estate and consumer goods, every industry feels the impact of job uncertainty and falling incomes. The pain does not stop at employment. The Reserve Bank of India's latest data reveals a grim picture-household savings have hit a 50-year low. Traditionally a nation that saved before it spent, India is now being forced into a hand-to-mouth existence, where the middle and lower-middle classes are rapidly depleting their financial cushions just to stay afloat. The pandemic-induced economic disruption did play a role, but what is more disturbing is the continued erosion of savings even after three years of supposed recovery.
Inflation, especially of essential commodities, has refused to relent. For over three years now, food and fuel prices have remained stubbornly high, chipping away at household budgets. The cost of daily life-groceries, cooking gas, electricity, rent-has skyrocketed without any commensurate increase in income or job security. This sustained inflationary pressure has killed the appetite for discretionary spending. Aspirational purchases such as cars, overseas vacations, gold jewellery, or even smartphones are witnessing sharp demand contractions. This slowdown in aspirational consumption is not just a symptom-it is a consequence and a catalyst. It creates a vicious cycle where reduced demand forces businesses to cut back further, deepening the employment crisis. Consumer-facing industries like hospitality, retail, and transport, which rely heavily on discretionary expenditure, are suffering immensely. This trend also reflects a deep psychological shift among Indian consumers-who are now prioritising survival over progress. The larger implications for the economy are dire. India's growth story has always been pegged to the twin engines of consumption and young labour. If both stall, the consequences will be long-lasting. The demographic advantage that India proudly flaunted is fast becoming a demographic dilemma. A frustrated and under-employed youth population is not just an economic drag-it is a recipe for social unrest and political volatility. Policymakers must confront this crisis with the seriousness it demands. Cosmetic measures, statistical massaging, or token schemes will not suffice. What India needs is a coordinated, long-term plan to create sustainable jobs, boost real wages, and bring inflation under control. Investments in infrastructure, green jobs, digital economy, and rural industries must be fast-tracked. Public-private partnerships to skill and upskill youth for contemporary demands should be scaled massively. Further, regulatory frameworks must be simplified to encourage entrepreneurship and MSME growth, which can be the real job creators. On the demand side, the government must also consider calibrated fiscal interventions-such as tax reliefs, inflation-linked subsidies for essentials, and interest rate supports-to ease the cost of living burden. Most importantly, there must be a conscious effort to rebuild trust in the economy: a belief that hard work leads to reward, that education leads to employment, and that India's young population is truly its greatest strength-not its biggest crisis. Because beneath the glitter of stock market highs and GDP projections lies an India that is anxious, unemployed, and slowly losing faith in its future. And that India deserves to be heard.
Published by HT Digital Content Services with permission from Millennium Post.