"Contrary to some assertions that India's growth has been 'jobless', the Employment Unemployment Surveys (EUS) of the National Sample Survey Office (NSSO) have consistently reported low and stable rates of unemployment over more than three decades," the report said.
"Indeed, unemployment is the lesser of India's problems. The more serious problem, instead, is severe underemployment," the report "Three-Year Action Agenda for 2017-18 to
2019-20" said. "What is needed is the creation of high-productivity, high-wage jobs," it said.
Citing examples of top manufacturing countries like South Korea, Taiwan, Singapore and China, it said, "The Make In India campaign needs to succeed by manufacturing for global markets."
Noting that with Chinese wages rising due to an ageing workforce and many large-scale firms in labour-intensive sectors in that country looking for lower-wage locations, the NITI Aayog said, "...with its large workforce and competitive wages, India would be a natural home for these firms."
"Therefore, the time for adopting a manufactures- and exports-based strategy could not be more opportune," it added.
"The presence of these firms will give rise to an ecosystem in which local small and medium firms will also be induced to become highly productive, thereby multiplying the number of well-paid jobs," it said.
Making a case for reforming labour laws, the NITI Aayog said recently fixed-term employment has been introduced in the textiles and apparel industry.
"This option may be extended to all sectors," it said.
Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on ndtv.com/elections. Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general elections.