India needs to create 115 million jobs by 2030 as more people enter the workforce, a study showed, suggesting that the South Asian nation has to boost services and manufacturing to keep the economy expanding.

Asia’s third largest economy will need to generate 16.5 million jobs each year, up from 12.4 million annually in the last decade, Trinh Nguyen, a senior economist at Natixis, wrote in a report Monday. About 10.4 million jobs will need to be from the formal sector, she added.

"To achieve this herculean task, India’s growth engine needs to fire on all cylinders, from manufacturing to services in the next five years,” she said in a research note.