Focus Less on Tariffs: Ajay Banga Lists 5 Sectors That Can Drive Job Creation in India

World Bank President Ajay Banga has urged India to shift its focus away from tariffs and trade barriers and instead concentrate on high-potential sectors that can generate large-scale employment. Speaking on India’s growth roadmap, Banga said the country’s biggest opportunity lies not in protectionism but in creating jobs through productivity, skills, and investment-led expansion.

According to him, India is uniquely positioned to turn its demographic advantage into economic strength provided it invests in the right sectors and builds the necessary ecosystem to support them.

The 5 Key Sectors Identified by Ajay Banga

1. Manufacturing

Banga stressed that manufacturing remains one of the strongest engines for mass job creation. Expanding production capabilities, improving supply chains, and encouraging global firms to manufacture in India could absorb millions of workers, especially in semi-skilled roles.

He noted that manufacturing can connect rural and urban economies while supporting exports and small businesses.

2. Construction and Infrastructure

Infrastructure development including roads, housing, urban transport, and logistics can generate employment quickly across skill levels.

Banga highlighted that construction not only creates direct jobs but also boosts demand in related industries such as cement, steel, and services.

3. Tourism and Hospitality

Tourism was identified as a powerful but underutilised employment generator. From hotels and transport to local crafts and food services, the sector can create widespread jobs, particularly for youth and women.

He said improving connectivity, safety, and ease of travel could significantly expand tourism-driven employment.

4. Agriculture Value Chains

While agriculture employs a large population, Banga emphasised moving beyond traditional farming toward agri-processing, storage, logistics, and food exports.

Strengthening agricultural value chains can raise incomes and create non-farm rural jobs, helping reduce migration pressure on cities.5. Care Economy

Banga pointed to the growing importance of the care economy, including healthcare, elderly care, childcare, and education services.

As India’s population ages and healthcare demand rises, this sector could become a major source of stable, long-term employment.

Why He Says Tariffs Shouldn’t Be the Focus

Ajay Banga cautioned that tariffs alone do not create sustainable jobs. Instead, he stressed the importance of:

Skill development
Ease of doing business
Investment-friendly policies
Strong institutions
Private-sector participation

He argued that competitiveness comes from productivity and innovation not from shielding industries.

India’s Demographic Opportunity

With millions of young people entering the workforce each year, Banga said India must act quickly to align education and skills with labour market needs. If done right, the country could become a global hub for both manufacturing and services.

Failure to generate sufficient jobs, he warned, could turn demographic advantage into economic stress.

Ajay Banga’s message is clear: India’s growth story must be built around jobs, not just trade policy. By focusing on manufacturing, infrastructure, tourism, agriculture value chains, and the care economy, the country can unlock large-scale employment and inclusive growth.

According to the World Bank chief, the path forward lies in investing where people work and where the future of India’s economy will be shaped.