Friday, Jul 19, 2024 09:30 [IST]
Last Update: Friday, Jul 19, 2024 03:54 [IST]
India recently celebrated an impressive
milestone: 8.4 percent GDP growth in the financial year ending March, making it
the fastest-growing major economy. However, this headline figure hides deeper,
troubling realities. Despite robust growth, India's unemployment rate surged
from 7.4 percent in March to 8.1 percent in April, with youth unemployment
around ten times higher than the adult rate. This discrepancy highlights a
critical issue: economic growth is not translating into job creation,
particularly for the younger generation.
The workforce’s increasing shift toward
agriculture is alarming. During Prime Minister Modi’s second term, the
proportion of the population employed in agriculture grew from 42.5 percent in
2018-19 to 45.8 percent in 2022-23, according to Oxford Economics. Agriculture,
while vital, remains a relatively unproductive sector, and this shift signals a
worrying trend of workers moving away from potentially more lucrative and
stable non-agricultural jobs.
The COVID-19 pandemic exacerbated existing
issues, stalling the already sluggish transition from agricultural to
non-agricultural employment. The Annual Survey of Unincorporated Sector
Enterprises (ASUSE) highlights that only 21 percent of total establishments
used the Internet for entrepreneurial activities, underscoring a significant
digital divide and a lag in modernization. Moreover, the informal economy,
which employs over 90 percent of India’s workforce, presents a persistent
challenge, leading to job insecurity and poor working conditions. This scenario
requires urgent attention and a comprehensive strategy to formalize employment
and improve workers’ conditions.
Agriculture remains the backbone of
India’s workforce, with 47 percent of the population dependent on it for their
livelihood. Despite this, rural workers continue to face inadequate income and
limited opportunities for growth. The Economic Survey of 2022-23 indicated that
65 percent of the population lives in rural areas, where economic opportunities
are scant.
Addressing these challenges requires a
holistic approach. The central government must prioritize employment generation
in its upcoming Union Budget, focusing on both the quantity and quality of
jobs. More public and cooperative investment in agriculture could create jobs
and improve productivity, easing the burden on farmers and generating stable
employment opportunities. Bridging the digital divide and encouraging digital
entrepreneurship can spur economic activity and create new job opportunities.
Policies aimed at formalizing the informal sector would provide workers with
better job security and social benefits, improving their overall quality of
life. Engaging the private sector, labour unions, states, and political parties
in designing a growth model centered around job creation is essential.