Indian economy will not be able to reap the `demographic dividend' unless more jobs are generated in the manufacturing sector, Chief Economic Advisor Raghuram Rajan said.

Speaking at a satellite session of the Delhi Economic Conclave on Monday, Mr. Rajan said the country needed to give manufacturing a better opportunity and discard old concepts that hold back employment and growth.

Mr. Rajan said that people were not able to move out of agriculture sector due to lack of jobs in the manufacturing sector. He stressed that generating more manufacturing jobs was very crucial to ensure equitable as well as sustainable growth.

Speaking on the topic, he added, "If we don't have that, the pressure to try and create welfare schemes will increase, simply because too many of our people will just not have the opportunities that they need."

He further said that while share of agriculture sector was on the decline, share of services sector was on the rise, but manufacturing had remained almost flat.

While agriculture sector's share in Indian economy has declined, the exit of people from the agriculture sector has not kept pace.

Mr. Rajan also agreed with columnist Surjit Bhalla that a cheaper currency would not be able to add to India's growth story.