July , 2024
Employment crisis in India
23:17 pm

Tirthankar Mitra

India is facing a severe unemployment crisis at a crucial juncture when its economy is recognized as one of the fastest-growing globally. Immediate and innovative strategies are urgently needed to leverage the demographic dividend inclusively.

The country faces a paradox where economic growth does not translate into sufficient job creation, despite boasting a population of 1.4 billion, with a significant proportion being young aspirants. The recent election results underscored the scarcity of well-paying jobs. Joblessness remains a significant concern among the youth and the ruling government, alongside widening inequality and persistent inflation.

Several development economists advocate for a job-specific strategy, emphasizing increased public employment in sectors such as health, education, nutrition, and sanitation. This approach not only generates job opportunities but also yields socio-economic dividends, fostering long-term economic resilience and social well-being.

Beyond the government’s efforts, the private sector must also play a crucial role in job creation. To stimulate private sector growth, the government should identify and eliminate policy hurdles. India’s gross fixed capital formation, a key indicator of private investment, has not met its potential. Simplifying regulatory frameworks, ensuring policy stability, and providing incentives for private investments are critical steps to unlock India’s entrepreneurial potential.

Education reform is essential to equip the workforce with skills relevant to a dynamic job market. Similarly, tax reform is crucial. A simplified and fair tax policy can enhance business confidence, stimulate investment, and address income inequality, promoting a more balanced economic landscape.

The unorganized sector, which employs the majority of India’s workforce, requires strengthened social security measures. Over time, efforts should focus on formalizing these workers into the organized sector. Addressing the unemployment challenge demands concerted efforts from all stakeholders: government, private sector, and civil society.

Harnessing India’s youth potential is imperative for fostering social stability and achieving sustainable development. This challenge is not just economic but also social in nature.

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