{"id":49172,"date":"2019-07-10T15:57:27","date_gmt":"2019-07-10T10:27:27","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=49172"},"modified":"2019-07-10T15:57:27","modified_gmt":"2019-07-10T10:27:27","slug":"answered-india-is-targeting-to-become-a-5-trillion-economy-by-2025-but-the-past-experience-of-jobless-growth-is-a-headache-for-indian-intelligentsia-in-light-of-this-discuss-various-causes-of-jo","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/answered-india-is-targeting-to-become-a-5-trillion-economy-by-2025-but-the-past-experience-of-jobless-growth-is-a-headache-for-indian-intelligentsia-in-light-of-this-discuss-various-causes-of-jo\/","title":{"rendered":"[Answered] India is targeting to become a $5 trillion economy by 2025, but the past experience of jobless growth is a headache for Indian intelligentsia. In light of this, discuss various causes of jobless growth in India in past. Give some measures to create job opportunities in India."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction. <\/strong>Write about India\u2019s growth.
Body. <\/strong>Reason for jobless growth.
Conclusion.  <\/strong>Way forward and measures. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

India has grown at about 7-8 % in recent years. But data and facts shows that Indian growth was jobless and not inclusive. According to Census 2011, the average growth rate of the economy was 7.7 per cent per annum, when it was only 1.8 per cent for employment. 66th round of the National Sample Survey Office (NSSO) data on employment in 2011 revealed that between 2004-05 and 2009-10, only 1 million jobs were added per year; in a period when the economy averaged a record 8.43% growth annually.<\/p>\n\n\n\n

Reasons behind the Jobless growth:<\/strong><\/h3>\n\n\n\n
  1. Service sector driven\ngrowth-<\/strong> <\/strong>The\nbiggest employer in India is the Agriculture sector, employing 45% of the\npopulation but it contributes only 15% to the GDP, whereas Service sector is\nthe biggest contributor to the GDP but employs less than 30%. IT and Financial\nservices are drivers of service sector growth in last 2 decades however both of\nthese sector are not employment intensive. This is contributing to jobless\ngrowth in India.<\/li>
  2. Failure of manufacturing\nsector-<\/strong> <\/strong>Manufacturing\nsector is labour\u2013intensive. But it did not become the engine of growth in\nIndia. Rather the knowledge-intensive services sector which is less labour\nintensive along with some other segments of capital intensive manufacturing was\nthe engines of growth in India. These sectors did not lead to much employment\ngeneration.<\/li>
  3. India\u2019s focus on higher\neducation-<\/strong> <\/strong>Since\nthe second five-year plan India has focussed more on higher education rather\nthan basic education.  We failed to\ncreate enough basic skilled workforce required for labour-intensive\nmanufacturing. Thus, contribution of less labour intensive service sector\nincreased significantly in India\u2019s GDP.<\/li>
  4. Import-oriented economy-<\/strong> Excessive imports have been\ndamaging Indian manufacturing industry. India has failed to witness a strong\ngrowth in the labour-intensive segment of the manufacturing sector, as it did\nnot move from the import to an export-oriented development strategy. If India had\nfollowed Labour intensive goods export-led model like Southeast Asian\ncountries, it would have created many jobs in the MSME sector. <\/li>
  5. Stagnation in manufacturing\noutput and employment contraction-<\/strong> <\/strong>Less jobs were created due to stagnant manufacturing output\nand contraction of labour-intensive segment of the formal manufacturing sector.\nThis is due to excessive rigidity in the manufacturing labour market <\/strong>and\nrigid labour regulations<\/strong> has created disincentives for employers to\ncreate jobs. According to world bank study Industrial Disputes Act has lowered\nemployment in organised manufacturing by about 25%. <\/li>
  6. Automation-<\/strong> <\/strong>The nature of Indian\nmanufacturing is not employment-friendly. Most of them are automated and any\nemployment is highly skilled. Thus it has contribute to growth, and not generated\nmuch employment.<\/li>
  7. Infrastructure Bottlenecks<\/strong>– <\/strong>Infrastructural bottlenecks\n(especially in access to electricity), lack of backward and forward linkages\nbetween agriculture, industry and service sector has failed to create jobs and\nalso hindered growth of labour intensive sectors.<\/li>
  8. MSME problems<\/strong>– <\/strong>The labour intensity of MSME\nis four times higher than that of large firms. But they face many problems.\nThey have poor access to credit and are plagued by many serious problems which\nhas limited there growth potential. <\/li>
  9. Skill Mismatch-<\/strong> <\/strong>Indian labour is not skilled\nas per industrial demands. Lesser skill levels of workers limit them the job\nopportunities. Also various programs by government like Skill India and\nstand up <\/em>India are launched recently only. Industry focussed skills are\nneeded to be inculcated.<\/li><\/ol>\n\n\n\n

    Some measures to increase jobs and employment-<\/strong><\/h3>\n\n\n\n
    1. Labour reforms-<\/strong> <\/strong>Labour Laws should be\nreformed as due to the stringent Labour Laws Corporates  in India are preferring Capital intensive\nmode of Production in a country where labour is abundant.<\/li>
    2. Strengthen education system-<\/strong> <\/strong>The education system needs\nto be revamped to create the desired skill-sets. At present, the education\nsystem is failing in delivering. Thus a closure look at education system is\nneeded with emphasis on skills and basics.<\/li>
    3. Promoting labour Intensive\nsectors<\/strong>–\nLabour intensive sectors like food processing industry, leather industry, apparel,\nelectronics, gems and jewellery, financial services, and tourism etc. should be\nencouraged. Appropriate subsidies and tax incentives should be given to\nincentivise them. Make in India<\/strong> initiative a great step forward which\nwill boost the manufacturing.<\/li>
    4. Strengthening MSME-<\/strong> <\/strong>MSME sector should be\npromoted and supported. Easing regulations, subsidies will help. Also easy\navailable of credit should be the priority. MUDRA has a potential to create\nrequired jobs in India.<\/li>
    5. Implementing Niti Ayog\naction agenda<\/strong>– <\/strong>The Action Agenda has provided several good ideas for job\ncreation, including labour law reforms at the state level<\/strong>. The report\nemphasizes the role of exports in job creation and recommends establishing\ncoastal employment zones (CEZs), similar to China\u2019s special economic zones\n(SEZs). This agenda must be implemented in letter and spirit.<\/li>
    6. Entrepreneurship-<\/strong> <\/strong>The focus of economic policy\nmust be on creating an enabling policy for youth to take up entrepreneurship\nand create more jobs in the market. India does not need five companies worth\n5000 crores turnover but needs 5000 companies of 5 crore turnover.<\/li><\/ol>\n\n\n\n

      With higher growth rates not having translated into more jobs, the government should formulate a National Employment Policy that takes these trends into account. Expansion of public employment and a national skilling programme could boost employment.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Write about India\u2019s growth. Body. Reason for jobless growth. Conclusion.  Way forward and measures. India has grown at about 7-8 % in recent years. But data and facts shows that Indian growth was jobless and not inclusive. According to Census 2011, the average growth rate of the economy was 7.7… Continue reading [Answered] India is targeting to become a $5 trillion economy by 2025, but the past experience of jobless growth is a headache for Indian intelligentsia. In light of this, discuss various causes of jobless growth in India in past. Give some measures to create job opportunities in India.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[9],"tags":[],"class_list":["post-49172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-public","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2019\/07\/Mains-Marathon-%40.png?fit=700%2C373&ssl=1","views":{"total":0,"cached_at":"","cached_date":1704785838},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/49172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=49172"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/49172\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=49172"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=49172"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=49172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}