India to face labour shortage of 47 million by 2020

Bangalore, May 25 (UNI) India will be facing labour shortage to the extent of 47 million in the global market by 2020, Boston Consulting Group India Vice President and Director James Abraham said today.

Talking to newspersons here, he said ''India faces the highest labour shortage in the world compared to other countries and with its present education level, especially in producing skilled labour, the shortage is likely to increase further.'' Stating that countries like the US and China were also facing a similar problem, Mr Abraham said ''Unless steps are taken to improve, countries facing labour shortage may not be able to achieve their GDP growth.'' Talking about difference in wages between India and other countries, he said labour rates in India were 70 to 80 per cent lower than US.

Boston Consulting Group India Principal Neeraj Aggrawal, who was also present, said ''If Indian industry fails to develop the required labour force, it will be losing the opportunity to grow.

India has not tapped fully the labour force available as compared to other countries in the world.'' Stating that acquisition by IT companies might help in solving the labour problem, he said ''acquisitions can change the landscape dramatically.'' UNI MSP RG GM SHR VV1632