25 January 2025 : Daily Answer Writing

Q.1) The key to fighting ‘jobless growth’ is ‘inclusive growth’. Elaborate.(150 Words/10 Marks)

Answer:

Jobless growth refers to an economic situation where the economy grows, but it does not result in a significant increase in employment opportunities.

Inclusive growth, on the other hand, aims at ensuring that the benefits of economic growth are distributed fairly across society, leading to improvements in living standards for all sections.

Positive Impact of Inclusive Growth on Employment:

1. Inclusive growth strategies promote a variety of sectors leading to wider arrays of employment opportunities + reducing dependency on a single sector [e.g. NREGA provided employment to over 73 million households which led to rural development, infrastructure improvement, and employment generation].

2. Jobless growth leads to underutilization of labour and human capital resulting in lower productivity in the economy.

a. Focus on education and skill development bridges the training and skill gap + reduce industry need and labour skill mismatch.

3. Small and Medium Enterprises: emphasizes on SMEs which are the largest employment generators in the Indian economy after agriculture [SMEs employ approx. 120 million people].

4. Social security is an integral component of inclusive growth; it provides a safety net + it enables individuals to take risks and seek new employment opportunities

5. Social Inclusion: equal access to education for women and marginalised communities can expand the labour force + tap into the potential of all segments

a. McKinsey Global Institute: advancing women’s equality could lead to a $28 trillion increase in global GDP.

b. Schemes like ‘Stand-Up India’ which promote entrepreneurship in people belonging to the SC/ST communities.

6. Infrastructure + Regional Development: (a) inclusive growth strategies often involve targeted investments in lagging regions; (b) investing in infrastructure stimulates economic activities across regions, especially in underdeveloped areas.

However, there are challenges:

1. Informal Sector: large section of Indian workforce is employed in the informal sector, which is beyond regulation of government policies, hence making any progress challenging.

2. Finance: SMEs often face difficulties in accessing finance due to stringent lending criteria, lack of collateral, and high interest rates.

3. Technological Disruption: rapid technological advancements, such as automation and artificial intelligence, can lead to job displacement, particularly in low-skilled sectors.

4. Policy Implementation: bureaucratic inefficiencies and corruption make effective implementation of inclusive policies challenging + beneficiaries are often left out.

 

For more such UPSC related Mains Answer Writing, Check Out –24 January 2025 : Daily Answer Writing