Despite India's rapid growth of recent years, economists believe the bulk of new jobs created were in the informal sector, not the flashier salaried positions of corporate titans like Infosys Technologies Ltd and Reliance Industries.


India's basic problem – as with much of Africa, Asia and Latin America –  is that it's economy can't create enough steady, salaried positions to absorb the millions of people entering the labor force each year.


Between 2000 and 2005, the most recent years for which data is available, the number of formal jobs in India stayed flat at about 35 million, while informal jobs grew 17% to 423 million, or well more than ten times the formal jobs, according to the Indian government.


Wall Street Journal

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