What do you understand by jobless growth? What makes Indian economy prone to jobless growth?

Multiple data sources clearly show that job opportunities in India are limited. India needs a new strategy to counter the phenomena of jobless growth. This requires manufacturing sector to play a dominant role.�
Following are the causes that make Indian economy prone to jobless growth:

  • 70%population is engaged in the primary sector contributing only 14% of GDP
  • Lack of education and skill development
  • Lack of coverage of financial inclusion, optical fiber and technology penetration
  • Focus on higher education
  • Import-oriented economy
  • Stagnation in manufacturing output and employment and contraction of the labour-intensive segment of the formal manufacturing sector
  • Slow Infrastructure Development
  • Governance failure
  • No targeted interventions designed specifically for specific sectors and less focus on MSME

There is need to implement Niti Aayog action agenda. An industrial and trade policy must be formulated. Special packages are needed for labour-intensive industries to create jobs. More focus should be given on women participation along with public investments in health, education, police and judiciary.


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