24th December, 2015 (MAINS)


Q1. The nature of economic growth in India in recent times is often described as a jobless growth. Do you agree with this view? Give arguments in favour of your answer. [12.5marks/2015/GS-3] 200 words.

Please write answer in the comments section.

  • Shailesh

    Yes, I fully agree with the view that the nature of economic
    growth in India in recent times has been a jobless growth. Let us have a look
    at the following points:

    Unemployment rate in India is showing an
    increasing trend since 2011 when it was 3.5%. The same rose to 3.6% in 2012,
    3.7% in 2013 and so on.

    The share of agriculture in total employment
    shrank from 52% to 49% over this period, with about 15 million workers
    migrating to towns and cities for work. The manufacturing and services sector
    failed to absorb them fully. At present there are 10.8 million unemployed

    According to the survey of Labour Bureau of
    2013-14, only 60.5% of persons aged 15 years and above who were available for
    the work for all the 12 months during the reference period, were able to get
    work throughout the year.

    Unemployment rate of the youth is a major
    concern. The unemployment rate for the persons aged 18-29 years and holding a
    graduation degree and above is 28 percent.

    Forty percent
    of the graduating students from engineering colleges run the risk of being

    So, we can clearly see that
    despite of tremendous economic growth of nation, it has not been able to
    produce the jobs as required and unemployment has become a social catastrophe.

  • Baba JI

    As per ASSOCHAM report, about five million jobs were lost between 2004-05 and 2009-10, paradoxically during the time when India witnessed the highest and consistent eight per cent growth in its economy, throwing a big question whether growth should be linked to employment generation, and about 13 million youth are entering the labour force every year which further increase
    the gap for the employment and growth .
    1)India’s economic transition has not followed normal path.Normally countries shift from agrarian to manufacturing and than finally service sector. But India jumped directly from Agriculture to Service sector led growth. It has its own negative outcomes.In last 2 decades the
    employment growth rate haven’t matched economic growth rate. The main reason is that every sector has its own employment elasticity i.e. employment per unit GDP growth rate.

    2)In India agriculture sector provides employment to 60% people whereas it contributes only 12% of GDP. It is marred with disguised
    employment due to lack of modernization, investment, fragmentation of land.

    3)In a services sector , which contributed 67.3 per cent (at constant price) to the GDP but employed only 27 per cent of total working
    population in 2013-14.

    4)Middle level jobs which are the bulk are being replaced by automation.

    5)Lack of skilled workforce, infrastructure and coherent education system which are bottlenecks in industrial growth. Thus joblessness.

    6)The economic growth skipped manufacturing sector largely which could have provided employment to large number .Experts argue that the growth of manufacturing will be the key for growth in income and employment for multiple reasons. For every job created in the manufacturing sector, three additional jobs are created in related activities. The other is that manufacturing in India is scalable and has higher labour absorption in comparison to services.. Govt has recently launched SKILL INDIA, MAKE IN INDIA programme majorly to boost employment. MSMEs are needed to be focused providing them credit, tax relief, market linkages for better growth.