MA

Madhav AgarwalAIR 1745408513670

Question Q11DiscussGS3GS2

Discuss structural unemployment and its relevance for India in the context of jobless growth.

Open scan (p.24)

Introduction

India has become the 4th largest economy by GDP yet its growth is regarded to be "jobless growth", which has been an Achilles Heel. i.e. 10% GDP growth today makes only 1% increase in job (as per experts).

38 words

Main Body

Structural unemployment: involves jobless due to change from one sector to another in an economy's life. Natural Transition (seen around world): Agriculture -> Manufacturing -> Services Sector -> Shadowy Sector

Relevance for India: 1) India faced premature industrialisation where there was direct jump of agri to service sector. 2) Industries/Manufacturing which are main job creators remained at back seat. Eg: Only 17% contribution to GDP. 3) Lack of skills: made labour stagnate and stay disguised in agricultural sector. 4) Service sector could not absorb the excess labour due to over-reliance on use of technology. 5) Focus on industry switched to capital intensive rather than labour due to: Poor labour laws, Policy Uncertainty, diversion of MSMEs.

Measures to promote Inclusive Job growth: Economic Survey (2024) said India needs to do 1.5 lac job pa in non-farm sector to absorb all labours by 2030. 1) Labour Intensive sector focus: Leather, Textile can create 80x than Automobiles. 2) Skilling of labour: National Apprenticeship Scheme is good step 3) Self Employment: through Startup India and MUDRA loans 4) Agriculture to food processing: by allowing contract farming, scientific support, higher value addition for youth. 5) Assemble in India for network products.

196 words1 paragraphs

Conclusion

Our growth has to be "Shared growth" for it to be inclusive because when "some shine, India does not shine".

20 words

Diagram

Bar chart showing Job to GDP Ratio declining from 1.0 to 0.4 to 0.1 across periods 1950-60 to modern era; flow diagram of natural transition from Agriculture to Manufacturing to Services to Shadowy Sector

Topper

Madhav Agarwal

AIR 1745408513670

Subject & Paper

GS3GS2

Topic

14. Issues relating to Poverty and Hunger

Poverty and Malnutrition

Jobless Growth and Structural Unemployment

Writing Stats

254

Total words

1

Paragraphs

analytical

Tone