| Introduction: What is jobless growth? Body: Evaluate the concept of jobless growth and the role of subsidies & safety nets in India’s economic policy. Conclusion: Way forward. |
When the economy expands but unemployment holds persistently high, this situation is known as jobless growth. In other words, although the economy is growing, fewer people are employed as a result. Subsidies and safety nets play a significant role in India’s economic policy, serving various social and economic objectives. They are integral to the government’s efforts to address poverty, inequality, and food security, among other key issues.
Some important issues highlighting jobless growth in India:
- Large population: India’s large population shows a large young demographic dividend with labour force expanding considerably. This large increase in the working population is not proportionate with the rate of job creation.
- Structural challenges: Agriculture and informal manufacturing are two labour-intensive industries that have historically characterized India’s economy. Although the services sector has expanded significantly, it hasn’t been able to efficiently absorb the excess labour from these sectors. Job creation has been hampered by structural issues, such as low skill levels and a lack of diversification.
- Use of automation & technology: The adoption of technology and automation in various industries has increased productivity and competitiveness but it has also led to job displacement in certain sectors, particularly in manufacturing.
- Informal nature of jobs: In India, a sizable segment of the workforce works in the unorganized sector, where there is no social safety, job security, or benefit system. Growth in the unemployment rate exacerbates the already insecure nature of work in this industry.
What is the role of subsidies & safety nets in India’s economic policy?
- Poverty Alleviation: Subsidies and safety nets are crucial tools for poverty alleviation in India. They aim to provide essential goods and services at reduced prices or free of cost to disadvantaged and vulnerable populations. Some of the programs like PDS, subsidies on kerosene, and cooking gas ensure that even the poorest citizens have access to necessities.
- Livelihood Generation: A safety net like MGNREGA provides 100 days of wage employment to rural households which also stimulates rural demand and boosts local economies.
- Affordable healthcare & education: Programs like Pradhan Mantri Jan Arogya Yojana (Ayushman Bharat) & Right to Education Act ensure affordable, accessible healthcare and education to the marginalized.
- Support Farm income: Subsidies on fertilizers, seeds, and agricultural inputs help support farmers and boost agricultural productivity. These subsidies are intended to keep farming costs low, making it financially viable for small and marginal farmers.
Conclusion:
The effectiveness & sustainability of subsidies and safety nets depend on careful design, implementation, and constant evaluation to address challenges and ensure resources are directed to those who need them the most.
