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    Small towns getting big deal for jobs

    Synopsis

    Financial services are radiating out, creating strong demand for manpower. Technology is pushing the gig economy into the hinterland. GoI and state governments are doing their bit, too, by plugging connectivity and infrastructure gaps.

    Small Towns Getting Big Deal for Jobs
    India's job market is moving out of its metropolises and into its tier-2 and -3 cities. The middle class is growing at its most rapid pace in these towns, and both white and blue collar employment is tracking the associated rise in consumption. Principal exports of goods and services are served from these locations, and companies are ramping up hiring closer to talent pools. Manufacturing and pharmaceuticals are clustered beyond the metros as are skilling opportunities for those in the IT industries. Financial services are radiating out, creating strong demand for manpower. Technology is pushing the gig economy into the hinterland. GoI and state governments are doing their bit, too, by plugging connectivity and infrastructure gaps.

    Delhi and Mumbai are already in the list of the world's top 10 megacities. But India has a sizable number of urban agglomerations that are actually pushing its urbanisation. Economic output is concentrating in these cities ferociously. Demand for housing and transportation are the most powerful propellers followed by healthcare and education services. All these industries have a big multiplier effect on employment. Realignment of global supply chains should contribute to the process by developing new manufacturing clusters with allied growth in indirect jobs in services.

    Migration is principally intra-state, which makes radial urbanisation the natural course to follow. The cost of replenishing infrastructure in metro cities outweighs greenfield investments in tier-2 towns where land and labour are cheaper and demand is stronger. Job-seekers find it a compelling option in terms of cost of living. Since these are the growth markets, career progression is also reasonably assured. Skilling needs are also being addressed: a big slice of the team that placed a craft on the lunar surface are from small towns with initial education outside the top drawer of the country's technical institutes. India is sustaining its economic growth on talent that cannot emigrate. Jobs need to go where it is to be found.

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