World Bank President Ajay Banga has identified infrastructure, agriculture, primary healthcare, tourism, and value-added manufacturing as five high-potential sectors for large-scale job creation in India, with micro, small and medium enterprises (MSMEs) at the centre of that push. Banga made the remarks in an interview on the sidelines of meetings in Asheville, underscoring his view that private investment — not government spending alone — must drive employment for India's vast young workforce.

Private Sector as the Engine

'Jobs are created in the private sector. Government enables and the private sector creates,' Banga said. 'And the jobs are created with micro and small and medium sized enterprises.' The framing is significant: it positions MSMEs, not large conglomerates, as the primary vehicle for absorbing India's working-age population, which adds millions of new entrants to the labour market each year.

The Five Sectors Banga Identified

Infrastructure topped Banga's list — not just for the direct employment generated through construction, but for the broader economic activity that improved physical connectivity unlocks. 'One of those is infrastructure, they're doing so, construction, but then what it enables,' he said.

Agriculture for small farmers was second. Banga cited a visit to Uttar Pradesh, where he observed cooperatives using technology from Google and the World Bank to help smallholder farmers access inputs at scale. The model, he suggested, could be replicated widely.

Primary healthcare ranked third. Banga described a decentralised clinic model — staffed by nurses, medical diagnostic technicians, and midwives — digitally linked to regional hospitals and doctors. Such a network, he argued, would generate substantial grassroots employment while extending healthcare access.

Tourism was fourth. Banga called it a 'huge opportunity' and noted he had discussed the sector directly with Finance Minister Nirmala Sitharaman during the G20 ministerial. 'In particular, I just spoke today to the finance minister about opportunities in tourism and what we can do together on that,' he said.

Value-added manufacturing rounded out the list. Banga pointed to India's existing strengths in minerals, metals, and fashion as areas ripe for further development to generate both employment and economic value.

Why This Matters for India

India's unemployment challenge is structural: a young demographic dividend that has yet to translate into commensurate formal job creation. This comes amid ongoing debate about whether India's GDP growth — among the fastest in the world — is sufficiently employment-intensive. Banga's sector-specific framing, backed by the World Bank's analytical and financing capacity, adds institutional weight to calls for a more targeted jobs strategy. Notably, four of the five sectors he named — agriculture, healthcare, tourism, and infrastructure — are areas where MSMEs already dominate but often lack capital, technology, and market access.

What Comes Next

Banga's remarks signal that the World Bank is actively exploring co-investment and technical assistance opportunities with India across these sectors, particularly in tourism. Whether those discussions translate into formal programmes will depend on follow-through from both sides. For India's policymakers, the World Bank chief's public endorsement of an MSME-led, sector-specific jobs model offers both a framework and a potential financing partner.