ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 27th May. Click Here for more information.
Source– The post is based on the article “Growth Is Everything” published in “The Times of India” on 28th July 2023.
Syllabus: GS3- Indian economy and growth
News- As per PM Modi, India will almost certainly become the third largest economy in the next few years.
What is the important contribution of the Modi government in the Indian economy?
The Modi government has ensured that economic growth takes place with macroeconomic stability, by avoiding imprudent fiscal policies. It has made India’s economic growth durable.
What are the issues with the Indian economy?
Since the emergence of Covid, the job market in India has undergone a structural setback. Notably, the least productive sector of the economy, agriculture, has experienced a relative increase in its share of employment.
According to the GOI’s jobs report for 2021-22, 45.5% of the workforce was engaged in agriculture, which is three percentage points higher than the pre-Covid period
Way forward-
The government should not remain satisfied with a growth rate of around 6%. As per economic survey, India’s potential GDP growth can rise to 7-8% a year in the medium-term with reforms.
Economic growth rate below 8% annually will not effectively tackle India’s serious employment issue.
To tackle this problem, innovative policies are needed to swiftly improve skill development. The level of human capital significantly affects investments.
