Easing of regulations relating to job security is critical to India's economic growth and the services sectors is the best example of this, said Dr Subir Gokarn, Deputy Governor, Reserve Bank of India.

Speaking at a CII (Confederation of Indian Industry) seminar, here, on Friday, Dr Gokarn said that creating employment opportunities is a huge challenge for India.

He stressed the need for creating flexible employment in manufacturing sector, expanding capacity to provide skill and training and creating a reliable safety net for employees.

Dr Gokarn said that by 2020 India will add 120 million in the age-group looking for employment, which will account for 28 per cent of the world's working population. The nearest competitor China, on the other hand, will add only 19 million people contributing 5 per cent of the global working population.

Similarly, in 2020-30, India will add another 100 million people to the work force, whereas China will see a reduction of 62 million in its working age population.

In India, the employment in service sector increased from 28 per cent of total population in 1999-2000 to 30 per cent in 2004-05. Similarly, the service sector's contribution to GDP has increased from 55 per cent of total GDP to 60 per cent.
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