14
Wednesday
November 2018
6:33 PM IST
News Headlines
India to host Italy on grass in Kolkata        It won't be easy for Mary Kom, says High Performance Director Nieva        Sensex rebounds 332 pts on easing crude, rupee gains        Govt mulls second round of 2,500 MW medium-term PPA auction        UK says Brexit deal 'almost within touching distance'        Trump criticises Macron again over European defence remarks        Infiltration bid foiled by Army in J&K, two terrorists killed        Delhi's pollution remains 'severe' as light showers further deteriorates air quality: authorities        Flipkart Group CEO Binny Bansal quits over 'serious personal misconduct' charges        Preparing for Australia tour by watching videos: Shami        India invites Swedish companies to explore investment opportunities        Govt cancels ED officer Rajeshwar Singh's leave        175 dead, over 10,000 affected by Nigeria cholera outbreak        Lankan parties move SC against Parliament dissolution by Prez Sirisena        Delhi pollution: Task forces conducts meetings on WhatsApp for urgent decisions        PM slams Rahul, Sonia for questioning note ban; need no certificate from those on bail        70 per cent turnout in first phase of Chhattisgarh polls: EC        Union Minister Upendra Kushwaha attacks NDA ally Nitish Kumar amid reports of RLSP MLA joining JD(U)        Mining Baron Janardhana Reddy Remanded in Custody Till November 24 for 'Shielding' Ponzi Scam Accused Father-Son        Death toll hits 25 from wildfires at both ends of California        
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Columns
Jobless Growth: Alarming situation
 
K. Gopalakrishnan

With the Centre mainly focussing on issues like cow slaughter, creating tension all over and dividing the nation on communal lines, the burning issues are totally ignored. The mainstream media too concerned about emotive and sensational issues even the disturbing fall in the GDP growth in the last quarter of the financial year did not get the desired attention. The Jan-March figure fell to 6.1 per cent compared to 7 per cent in the previous year.

Though there could be many reasons virtually everyone pointed to demonetisation. One was reminded about what former prime minister, Dr. Manmohan Singh warned in the Rajya Sabha during the discussion on demonetisation. There were expectations that the economy would outperform in the fiscal gone by anticipating spur in consumption with the implementation of the 7th Pay Commission and a favourable monsoon. The Centre’s calculation that demonetisation would provide surplus revenues with the unearthing of black money in huge amounts was proved wrong.

In fact the Reserve Bank of India is yet to provide the final figures of demonetisation. Another promise to the nation was that it will bring down terrorist activities and stone pelting by the crowds in Kashmir valley. The last few months have proved otherwise. The impact of demonetisation in the organisation is yet to come out and one hopes that it would not be adverse. It is the farmer who contributed maximum though he hardly gets justice. However many economists assure that the impact of demonetisation will affect only one more quarter and 2018 may emerge with high growth rate with better monsoon and more reforms.

One has to carefully watch the priorities of the Centre. If it continues to concentrate on divisive issues and communal politics with an eye on the forthcoming elections to the state assemblies within a year or so, growth rate may not be positive. It has to concentrate on announced policies like Make in India, Skill development, Start-ups. Slogans alone cannot work. They have to be translated into action. They have to be implemented with commitment and sincerity. Ideal approach would be to handle development in cooperation with the Opposition, keeping out politics from this national task.

It is of course difficult in a country where elections are held at different levels every year on issues unrelated to development in practise.Not that India has performed badly. It has had a fairly reasonable growth rate for decades. Even today with the decline India’s growth is the second largest in the last quarter. In the financial year India has retained the position of the country with the highest growth rate.

But there is an alarming feature. Though the economy is growing remarkably in comparison the growth rate of jobs is abysmally low. If not checked immediately it can have dangerous consequences. Simply put development will be meaningless if it is unable to offer jobs. With more and more people leaving agricultural sector and seeking occupation outside, the situation would be alarming in the coming years.

To be fair this is not a feature due to the policies of the NDA government. During UPA rule too, the situation was almost the same. Since 2004 high growth rate has not ensured matching increase in jobs. Jobs offered were rather low. Statistics reveal a lot. During 2001-2011 the growth rate of labour force grew (2.23 per cent) was significantly higher than the growth rate of employment(1.4per cent) several folds lower than the growth of the economy.

Report of Census 2011 reported that the average growth rate of the economy was 7.7 per cent per annum when it was only 1.8 per cent for employment. National Sample Survey Office (NSSO) data (66th round) in 2011 revealed that between 2004-05 and 2009-10 only 1 million jobs were added per year in a period when the economy averaged a growth of 8.43 per cent annually. A report by the HDFC on India’s tapering job growth says that “employment elasticity” in the economy is now close to zero – for every one point rise in GDP jobs grow only 0.15. Fifteen years ago it was 0.39. Most of the studies show that there is steady decline and is now heading towards disturbing levels.

A Sector wise study shows that the emphasis under the liberalised regime is on capital intensive projects and not labour intensive sectors. During the planned development Nehruvian model the emphasis was on labour intensive projects to take advantage of India’s vast labour force. Agricultural sector has 45 per cent of India’s work force contributing 15% to the GDP. Service sector is the biggest contributor to the GDP but employs less than 30 per cent of the work force. Same is the case with another capital intensive industry –IT.

The reasons for the present state are many. With liberalisation the engine of growth was knowledge intensive service sector with some segments of capital intensive manufacturing companies. Labour-intensive manufacturing sector did not become the engine of growth. Widespread labour saving measures kept out labour. Public sector which employed a large number of workers were closed down or sold to private investors which too led to employment losses due to economy measures. Contraction of labour intensive segment of the formal manufacturing sector and stagnation in manufacturing output too took its toll. Above all in the recent years private investments declined substantially.

The situation can be changed only through governmental measures like tax concessions for labour intensive companies, a check on ruthless labour saving automation, allowing investments in small scale sector through suitable change in laws as today there is hardly any investments in this sector. Perhaps a serious study is required on the problem to improve the situation.

Allowing the situation to continue can also have serious political problems. Already unemployed youth is attracted to movements like reservation for Patels in Gujarat, for Jats in the Hindi belt and Marathas in Maharashtra. These could be serious political groupings threatening the very system or creating law and order problems damaging to the economy. They are prone to violence too.

The Centre should look into these serious problems and come out with immediate measures. The policy on development and reforms need to be revisited and come out with measures for the betterment of the poor. The very first step should be to resolve the problems in the agricultural sector and put an end to the farmers’ suicides. Prescribing what to eat or read or wear is the anti-thesis of democracy. Jobless growth is no growth. In fact it is a crime. For in such a growth only the rich thrive.


The Union Govt's move against the Missionaries of Charity is a well-planned attempt to defame Christianity? Opinion
The Union Govt's move against the Missionaries of Charity is a well-planned attempt to defame Christianity? Opinion
Federal parties look up to New Delhi
Major setback for CPM, Advantage BJP
A heinous crime
Major set back to BJP and CPIM in by-poll
Respect differing views, don’t brand them enemies
Consensus on Condoning Crime
Honourable Judges look inwardly
An admirable decision
CPI(M): Differences on move to change tactics
Deep rooted malaise
Gifting public property
Congress leaders on a suicidal path
Development on the backburner
Congress: Specialising in self- goals
Hygiene: Public efforts too needed
KERALA NEWS
Sabarimala protests: Arrests up to 2061, Kerala HC warns police
 Thiruvananthapuram, OCT 27: As the number of people arrested for allegedly being involved in violent  
Vijayan urges UAE Keralites to back salary challenge
Sabarimala row: Protests against SC verdict continue
Balabhaskar's wife Lakshmi shifted to ICU
INTERNATIONAL NEWS
UK says Brexit deal 'almost within touching distance'
 London, Nov 13 (AP) Britain and the European Union are "almost within touching distance" of a Brexit
Trump criticises Macron again over European defence remarks
175 dead, over 10,000 affected by Nigeria cholera outbreak
Lankan parties move SC against Parliament dissolution by Prez Sirisena
NATIONAL NEWS
Infiltration bid foiled by Army in J&K, two terrorists killed
 Srinagar, Nov 13 (PTI) Two unidentified terrorists were killed Tuesday when the Army foiled an infil
Delhi's pollution remains 'severe' as light showers further deteriorates air quality: authorities
Delhi pollution: Task forces conducts meetings on WhatsApp for urgent decisions
PM slams Rahul, Sonia for questioning note ban; need no certificate from those on bail
Untitled Page
Rashtra Deepika LTD
Copyright @ 2018 , Rashtra Deepika Ltd.