India's economic growth story is often overshadowed by the persistent challenges of unemployment. Analyse 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.

India has emerged as the 6th largest economy and will be 3rd largest by 2027 as per IMF. India is targeting a 500-trillion economy by 2047 to attain Viksit Bharat Status. However, India's economic growth has often been termed as jobless growth due to low employment elasticity of growth. The unemployment rate as per PLFS is around 14.8% and as per Center for Monitoring Indian Economy it is around above 16.5%. Thus, persistent unemployment is a major challenge for India.

Structural unemployment happens due to change in structure of economy while transitioning from agriculture. India's case: Agriculture: 45% employed, 18% GDP. Service: mfg (18%) employed, 55% GDP. This shows structural unemployment. Cause of the Structural unemployment: Stagnation of manufacturing sector to crowd 17% of GDP. Stark Labor Laws => disincentivized manufacturing. Poor Infrastructure made Indian industry uncompetitive. Overexertion of Indian economy due to for tariffs. Lack of social security in industrial jobs => labor did not shift from agriculture. Ways in which MSMEs can contribute to industrial diversification and technological advancement: Promotion of Sector Intensive Sagas by Food Processing Sector, Textile. Support to MSMEs: PCS MSMEs contribute to Illamun Manufacturivity jobs. Simplifying Regulation and Biosciences and give boost to Make in India. Unplayed Linked Institute (Budget 2024). Rapid Infrastructure => Improve economic Productivity => More jobs. This way we can ensure job creation and ensure growth is sustainable and inclusive.