Q20.The nature of economic growth in India in recent times is often described as jobless growth. Do you agree with this view? Give arguments in favour of your answer.

Jobless growth signifies economic expansion without a commensurate rise in employment opportunities. India largely experiences this phenomenon, though with sectoral variations.

Arguments Supporting 'Jobless Growth'

• India's growth is predominantly capital-intensive, driven by services and high-tech sectors, not labour-intensive manufacturing.
• Automation, skill mismatches, and slow growth of formal manufacturing further limit job creation.
• Declining employment elasticity means less job creation per unit of GDP growth.

Nuances and Challenges

While the services sector and gig economy create jobs, many are informal, low-wage, and insufficient to absorb India's large workforce.

Consequences

• Threatens to transform India's demographic dividend into a burden.
• Exacerbates inequality and potential social unrest.

Way Forward

• Prioritize labour-intensive manufacturing (e.g., MSMEs, textiles, food processing).
• Robust skill development aligned with industry needs.
• Increased public investment in infrastructure and formalization of the economy.

A comprehensive strategy for inclusive, labour-absorbing growth is essential to harness India's vast human capital effectively and avoid the pitfalls of jobless expansion.