DMPQ: DMPQ: Unutilised employment potential in the phase of demographic transition will only lead to demographic catastrophe. Explain the cause of Unemployment in India. Steps taken by India to tackle unemployment.

India’s growth period has not been able to create job opportunities and hence sometimes it is termed as jobless growth.  According to a report of CII, 12 million are entering into work force annually. This figure reaches to 18-19 million if we count the people leaving the already saturated agriculture sector. But catch lies in number of job creation which is less than 0.2 million in  the year 2015.

This widening can create demographic catastrophe in the near future. The cause of unemployment in India are as follows:

  • Shortage of skills
  • Labour intensive sectors are suffering from slow paced pvt. Investment particularly after demonetisation.
  • Growing automation is another reason
  • Lack of mass employment opportunities due to slower manufacturing sector.
  • Unfavourable incentives that do not allow companies to grow and take advantage of cheap labour


Steps taken By India:

  • Skill india mission
  • National career service portal
  • Pradhan Mantri Kaushal vikas yojana
  • Start up India, Stand Up India, Mudra


Way forward:

  • Structural reforms to labour, land and capital markets for sustainable growth
  • Make teaching and academic curricula more employable driven
  • Reforming archaic labor laws
  • Infrastructure investment


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