By Saumitra Bhaduri & Shubham Anand

India’s labour market is a paradox. While India recorded GDP growth of 7.8% in the first quarter of FY26, a closer look reveals that two fundamental challenges persist: a pervasive skills mismatch, and a troubling disconnect between growth and job creation. This narrative is less about a quiet revolution and more about the risk of an unfulfilled demographic dividend, demanding attention.

Perhaps the most debated aspect of India’s labour market is the trajectory of women’s participation. India’s female labour force participation rate (FLFPR) has shown a classic “U-shaped” curve, falling from 34.1% in 1999-2000 to a low of 23.3% in FY18. While a recent rebound has brought the figure up, the FLFPR in July stood at 36.9% for persons aged 15 years and abo

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