Relevance : GS Paper IIIÂ (Economy)
The Indian economy is growing fast growing. However, unemployment rate is very high.
Present economic situation offers no hope to provide jobs
- Fragmentation of farm holdings is continuing.
- Migration to urban areas is increasing.
- New technologies such as digitalization, robotics, etc are killing jobs
- Outsourcing of employment to private firms by the govt has dealt a blow to quality jobs.
- Inadequate allocation as well as glitches in MGNERGA Â are causing distress in rural employment.
How to address this crisis of joblessness?
- The place to look for new jobs is businesses at the bottom of the pyramid i.e. small-scale sector.
- Thereafter come the small to medium size units.
- The maximum policy focus should be on demands of the corporate sector.
- Infrastructure for small businesses has to be available at a minimum cost. Here local governments have to take the initiative.
- Accounting for the largest chunk of India’s GDP, service sector needs to be focused upon.
- The one magic key to job creation is skills creation.
- A sustainable agriculture will have to make do with fewer and fewer cultivators.
