India is second most populated country in the world with 1.3 billion people . Every month million people turn 18 which implies India should be in a position it should createATLEAST 3 to 4 lakhs jobs for a month to reduce already raising unemployment rate. To create jobs government has taken steps such as MAKE in India,STARTUP India, DIGITAL India etc. Now question is: did these schemes bought growth to India? Did jobs have created?
According to world bank , Indian economy growth rate is 7 percent.it claim that India will achieve 7.7 by 2020. This growth rate is creating same amount of jobs? According to the labour bureau report, employment rate has been reduced by 7 % in construction sector . In service sector it is predicted 2 to 3 lakhs jobs loss will be there in BPOs Due to growing protectionism in developed countries like USA, UK . Gross fixed capital formation is slipped to 0.6% from 6.9% (last year) . Half of the jobs were created in health and education sectors but these sectors are known for meagre payments. Index of industrial production is inched up just by 6%.
More than 68% of working population earning less than 10,000 rupees per month which is equivalent to nothing. Year round jobs were found only in 61% of people in work force of which 34 % were working only for 6 – 11 months even though they were willing to work for 12 months. In India under-employment and voluntary employment have been increasing because of family situation and choosing not to work below certain level after investing huge money on education. Agriculture is not even considering for employment because of erratic nature of climate , increasing investment requirements, lack of infrastructure . Indian agriculture is known for it Disguised -employment.Growing NPAs in banks affecting credit growth (gross credit given to industry grew at 6.7% in the past 3 years)which in turn will have affect on industry growth and jobs growth.Overall Only 1.1% job growth is noticed in 2016 -17. It is clear that India is experiencing both “ Jobless growth and growth less jobs” .
India no longer can depend on only consumption expenditure demand which acted a barrier against 2008 economic shock waves like Himalayas . Government have to take steps to attract private investments such as streamlining regulations and policies , enforcing single window clearance system , reducing NPA burden on banks ,and some other structural reforms is need of hour. increasing Public capital expenditure will enhance the trust of private players to invest.