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12 JUNE, 2017 (MAINS)



Q1.  “High economic growth rate has not been able to generate high employment growth in India”. What are the factors at play, which have led to jobless growth in India? (200 words)


Please write the answer in comments section

  • Osho Korde

    • Growth is attributed to service sector, in which employment and wages both have seen rise. But the biggest employing sector is agriculture sector in India, employing around 45% if the of the population but contributing 15% to the GDP, whereas Service sector is the biggest contributor to the GDP but employs less than 30%. IT and Financial services are drivers of service sector growth in last 2 decades however both of these sectors are not employment intensive. Thus, contributing to jobless growth in India.
    • Stagnation in manufacturing output and employment and contraction of labour-intensive segment of the formal manufacturing sector.
    • Labour –intensive manufacturing sector did not become the engine of growth in India.
    • The nature of Indian manufacturing is not employment-friendly.
    • The tax incentives, subsidies, depreciation allowance all are solely linked to the amount invested and not to the number of jobs created.
    • Sluggish process in education and skill levels of workers.

    What should be done to increase the employment
    • The education system needs to be revamped to create the desired skill-sets. At present, the education system is failing miserably in delivering even whatever it is designed to.
    • MUDRA scheme should be expanded as it can be a game changer for MSME sector and this sector has a potential to create required jobs in India.