India's economic growth story is often overshadowed by 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 growth.

Unemployment refers to the proportion of working age population that is unable to find work suited to their capabilities. 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. Laissian economy explains this transition as the country's growth takes place. Farm sector provides low wages, higher productivity, better standards of living, disgraced unemployment. Manufacturing sector provides higher productivity and better standards of living. 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: Radical 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.

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: Radical development of service sector. 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 products (ES). iii) PLI scheme incentivizing the production of goods - 'Atmanirbhar Bharat'. (i) Mobile phones, net exports now. iv) Investment in capital infrastructure and formation of industrial towns. v) SEZ s to promote export. vi) RoDTEP scheme to improve the product competitiveness in foreign market. vii) 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 (Yeats to 10-15) capability of our country.