Question 10Explain and SuggestGS3GS1

Economic growth in the recent past has been led by an increase in labour activity. Explain this statement. Suggest the growth pattern that will lead to the creation of more jobs without compromising labour productivity.

Introduction

Labour activity refers to the increased participation of workers in the economy

12 words

Main Body

Economic growth is led by increase in labor activity

1Demographic advantage: India's working age population constitutes 60% of total population with median age of 28 yrs yielding large number of working hands

2Increased employment & production: The latest PLFS survey data notes that unemployment has decreased recently to 6.8% from 9.1% earlier

3Improved human capital: Accumulation of human capital via education, skill training, health measures etc has increased labor activity & in turn

Economic growth

4Innovation & Entrepreneurship: India has grown into 3rd largest startup ecosystem in world providing jobs to million

5Positive Multiplier effects: Increased labor activity led to increased economic activity & job creation, increased tax revenue for government & further investment in public sector

Growth pattern to create jobs without loss of labor productivity

1Invest in Innovation and Research & Development: India's GERD has been climactically low at around 0.6%.

Better innovation alone can further enhance labor productivity and also provide newer economic opportunity

2Promote Entrepreneurship:

GoI must foster culture of entrepreneurship into youth – align to capital – streamlining of regulations – mentorship at [incubation] centers etc

(○) Startup India scheme

3Support MSMEs & Cooperative model of development

(○) PM Mudra Yojana

4Reduce logistic cost & infrastructure bottleneck – they have multiplier effect on economic growth & job creation

(●) National Investment Pipeline

5Enhance labor market flexibility – policies that strike balance between protection & flexibility

(●) Labor reform

6Better PPP model of growth

Leverage strength of growing of both private & public for job creation leading economic development.

Therefore, both the dream of demographic dividend & Vibrant Bharat will be realized only with job creation led economic growth.

284 words17 paragraphs

Conclusion

Both the dream of demographic dividend & Vibrant Bharat will be realized only with job creation led economic growth.

19 words

Uses latest survey data (PLFS)
Identifies demographic dividend opportunity
Links human capital development to labor productivity
Addresses both quantity and quality of employment

Open original scan

Page 28

Topper

Dr. Sachin B L

2023

Subject & Paper

GS3GS1

Topic

Economic growth and employment

Labour productivity and job creation

Demographic dividend and employment

Writing Stats

315

Total words

Paragraphs

Analytical and structured

Tone

Linked PYQ

"Economic growth in the recent past has been led by increase in labour productivity." Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity.

15M2022Explain