Viewpoint: Impact Investors Can Alleviate India’s Unemployment Crisis
Tuesday, October 29, 2019
By Aditya Jahagirdar
India’s labour market is languishing, and a practical solution to the problem could come from impact investors.
The country creates just about a million jobs a year, whereas 20 million new jobs are required annually to absorb all new entrants to the labour market, according to various estimates. The imbalance has led to unemployment levels that are at a 45-year high.
This is where impact investing, or investments that generate a social impact alongside financial returns becomes important. With the right business model, impact investors can profitably channel their capital to labour-intensive industries and create more jobs.
Though it’s still early days, such impact investments are not uncommon in India.
Photo courtesy of GPS.