India has been steadily growing economically in past few years but still faces a number of challenges such as creating enough job opportunities for the ever-growing population and facilitating the transition of informal employment to formal employment amongst others. According to statistics, 35% of the population of India is accounted for by the youths of the nation. The workforce of this nation is expected to increase by approximately 200 million in the next 2 years. The transition from agricultural to non- agricultural of the entire structure suggests new opportunities for employment. To attain a successful and smooth transition and provide an opportunity for all the unemployed, the nation needs a National Employment Policy.

The principles for the National Employment Policy must include ideas and strategies to increase human capital through skill development and generate sufficient amount of decent quality jobs for all the citizens of India. The National Employment Policy must aim to produce equity in the labour market and support and promote self-employment. The Policy should make sure that employment creation is not restricted to just one or two sectors. It should increase employment and provide it in all the different sectors. There are numerous educational and skill policies launched by the Government these days as increased knowledge and qualification will help provide employment various different fields. The issues of skill mismatch are not well taken care of by such policies which do not provide appropriate training for every sector which is very necessary to increase productivity and thus output. The National Employment Policy must further promote education and skill training of labours and all the unemployed for their benefit.

The National Employment Policy must try to improve the ways to solve issues such as land fragmentation and make farmers participate in higher value addition and skill the rural youth in upcoming ad brand new technologies. The National Rural Employment Guarantee Scheme has done a great work in providing and boosting employment in the rural parts of the nation. If the National Employment Policy must aim to ensure that rural employment level keeps increasing and must provide more opportunities to the women and socially disadvantaged groups. The National Employment Policy must also focus on forming quality standards equivalent to international standards of employment in all the sectors especially the labour market where the labourers are often exploited by their employers.

The National Employment Policy must look to increase dependence on exported goods and promote manufacture and usage of domestic goods by supporting the domestic local businesses and providing quality training for business owners on how to increase productivity of employees in order to increase output. This is because the Micro, Small and Medium Enterprises (MSMEs) are the highest provider of employment, thus it is necessary to support and develop them.

The National Employment Policy if and when it is drafted will be a huge boost to the Indian economy and the increase in the employment will be massive thus boosting the nation forward as a developing country. Every nation must try to attain almost zero rate of unemployment and this policy could very well be a step in that direction.