India is set to become the largest contributor to the global workforce with a staggering 962 million out of 3.5 billion global working age population by 2030. 52 percent population in the country is still dependent on agriculture for livelihood, jobs in manufacturing sector is almost stagnant and there is a jobless growth in service sector. Moreover, the skewed sectoral distribution of labor has led to a situation of low unemployment and high poverty situation in India. The crux of the problem which the papers tries to address is that the low levels of productivity has led to a cut down on the entire size of national income leading to low per capita income in the country. This paper tries to establish a link between productivity and per capita income and thus it gives a fresh perspective on growth and development strategies. 

KEYWORDS: livelihood, jobs, productivity, demand, output