AA

Aditya AgarwalAIR 1

Question 11Analyze and Suggest policy measuresGS3GS2

भारत की आर्थिक विकास की कहानी प्रायः बेरोजगारी में निरंतर चुनौतियों से अभिमथित होती है। संरचनात्मक बेरोजगारी की अवधारणा का विश्लेषण कीजिए और भारत की वर्तमान आर्थिक स्थिति के संदर्भ में इसकी प्रासंगिकता पर चर्चा कीजिए। आर्थिक समावेशी वृद्धि को प्रोत्साहित करने के लिए नीति उपाय सुझाइए। (15 अंक, 250 शब्द) India's economic growth story is often overshadowed by the persistent challenges of unemployment. Analyze the concept of structural unemployment and discuss its relevance in the context of India's current economic situation. Suggest policy measures to promote inclusive job growth. (15 marks, 250 words)

Open scan (p.21)

Introduction

Unemployment refers to the proportion of working age population that is unable to find work suited to their capabilities

19 words

Main Body

As per PLFS report it is around 10% among youth (15-29 years).

Structural Unemployment refers to the issue in which proportion of population is working in farm sector at low wages and unable to transition to manufacturing sector.

Lastisan economy explains this transition as the country's growth takes place.

Farm sector provide low wages, higher productivityManufacturing sector higher wages, better standards of living

India's current economic situation:

ES24 : 45% of workers employed in agriculture sector - 17% GDP contribution
12% workers employed in manufacturing sector contributing ∼ 15% GDP

The transition from agriculture to manufacturing sector did not take place successfully and India jumped directly to service sector (contributing over 50% GDP)

This has resulted in structural unemployment.

Reasons for this:

Rapid development of service sector post LPG reforms
Availability of IT infrastructure providing outsourcing jobs.
Low capital investment in manufacturing sector.
Asian countries such as Vietnam, Indonesia giving tough competition
Chinese products - flooding the market.

Policy measures to address the issue and promote inclusive growth:

i) Make in India scheme : Improving the manufacturing GDP - to 25% and 100 Mn jobs.

ii) Assemble in India for network product (ES).

iii) PLI scheme incentivising the production of goods - (Atmanirbhar Bharat)

iv) Mobile phones, net exports now

v) Investment in capital infrastructure and formation of industrial towns.

vi) SEZs to promote export.

vii) RoDTEP scheme to improve the product competitiveness in foreign market

viii) Skill India Mission for skilling workers. Improving the participation of workers by skilling them along with investment in the manufacturing will help in achieving the (years to get) capability of our country.

278 words24 paragraphs

Diagram

Shows transition from farm sector (low wages, low productivity, disguised unemployment) to manufacturing sector (higher wages, higher productivity, better standards of living)

  • Clear explanation of structural unemployment concept
  • Statistical data (PLFS, ES24) supporting the argument
  • Identifies root causes of sector transition failure
  • Comprehensive policy solutions with specific schemes
  • Links policy measures to achieving inclusive growth

Topper

Aditya Agarwal

AIR 1

Subject & Paper

GS3GS2

Topic

Indian Economy

Unemployment and Economic Growth

Structural Unemployment and Inclusive Growth

Writing Stats

297

Total words

24

Paragraphs