• UGI USER
  • Nov 03, 2023
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Q. The nature of economic growth in India in recent times is often described as jobless growth. Do you agree with this view? Give arguments in favour of your answer.

Structure of Answer

Introduction

  • Briefly define Jobless growth, mention Rate of GDP and Employment growth rate

Body

  • Give Arguments in Favor of Jobless Growth in India
  • Mention latest reports of labour bureau, give examples
  • Mention Government Initiatives to Tackle Jobless Growth in India
  • Mention Measures to Combat Jobless Growth

Conclusion

  • Mention Addressing jobless growth in India is of paramount importance for achieving inclusive growth and overall development.

Jobless growth, an economic phenomenon in which a country’s economy experiences expansion while employment levels remain stagnant or decline, In the past decade, India’s GDP grew at an average rate of 7.5%, while formal sector employment only increased by 1.5% per year is a matter of significant concern for India.

Arguments in Favor of Jobless Growth in India

  • Sectoral Shift Challenges: The decline in employment within the agricultural sector hasn’t been balanced by the absorption of the labor force into the service and manufacturing sectors.
  • Demographic Dividend and Inadequate Job Creation: Between 2005 and 2010, only 1 million jobs per year were added, while 60 million joined the labor force, highlights the gap between job creation and the expanding workforce.
  • Informal Sector Dominance and Marginalization of Labor: Informal sector growth offers jobs but often in unstable, low-paying conditions, marginalizing the workforce
  • Skills-job mismatch: Even highly educated graduates, like engineers and MBAs, face unemployment, reflecting skills-job mismatch.
  • Formal Sector Job Decline: Labour Bureau’s data revealed formal sector job creation drop from 3.3 million to 1.35 million (2011-2016).

Government Initiatives to Tackle Jobless Growth in India

  • Make in India to boost manufacturing, program has created over 1.5 crore jobs in India since its launch in 2014, according to the Ministry of Commerce and Industry.
  • Start-up India to promote entrepreneurship, since 2016 India’s startup ecosystem has grown significantly with 99,371 startups, 100+ Unicorns, and 8.93 lakh jobs created .
  • Pradhan Mantri Kaushal Vikas Yojana addressing skill gaps in the labor market. The program has trained over 5 crore people since its launch, and over 1.09 crore of these people have found jobs.

Measures to Combat Jobless Growth

  • Support for SMEs: Provide financial and technical assistance to small and medium-sized enterprises, fostering entrepreneurship and job creation.
  • Labor Market Reforms: Reform labor laws to enhance ease of doing business and incentivize job creation.
  • Gender and Social Inclusion: Implement policies to empower women and marginalized groups, ensuring equal opportunities.

Addressing jobless growth in India is of paramount importance for achieving inclusive growth and overall development. Ensuring that economic expansion translates into meaningful employment opportunities for a diverse workforce is crucial in reducing inequality and fostering a more equitable and prosperous society.