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GS Paper: GS3-02.Inclusive growth and issues therein

  • A new economics for inclusive growth

    Elements of Inclusive growth - INSIGHTSIAS

    Central idea 

    The central idea urges a reevaluation of India’s economic strategy, emphasizing the necessity to shift from an exclusive focus on high-end skills to inclusive growth. It underscores the mismatch between skills, jobs, and incomes and advocates prioritizing the small-scale manufacturing sector to foster sustainable and locally enriched economic development. The article suggests seizing the opportunity to attract producers and meet unmet needs for India’s growth.

    Key Highlights:

    • The book “Breaking the Mould: Reimagining India’s Economic Future” suggests a shift from manufacturing to exporting high-end services, challenging traditional economic strategies.
    • The mismatch between skills, jobs, and incomes is identified as a major obstacle to India’s growth, reflecting in social and political demands for better wages and security.
    • The growth pattern focusing on high-end skills has not generated sufficient decent jobs for the majority of India’s population.

    Key Challenges:

    • The Achilles heel of India’s economy is insufficient jobs and incomes, evident in demands from various sectors for fair wages and social security.
    • A critical mismatch between skills, jobs, and incomes poses a significant challenge to India’s growth and economic well-being.
    • The reliance on high-end skills has not translated into enough decent jobs for the majority, hindering inclusive growth.

    Key Terms and Phrases:

    • Leapfrogging manufacturing in favor of exporting high-end services.
    • Mismatch between skills, jobs, and incomes.
    • “India was Shining” era and its economic implications.
    • Inclusive and sustainable economic growth.
    • Small-scale and informal manufacturing sector.
    • The importance of richness of economic activity within local webs.

    Key Quotes:

    • “India cannot afford to neglect its small-scale and informal manufacturing sector any longer.”
    • “Investing in education and skills for ‘high end’ manufacturing and services will not benefit the masses if they cannot be employed.”
    • “There are no shortcuts to inclusive economic growth.”

    Key Statements:

    • The book’s recommendation challenges India’s traditional approach to economic development.
    • The focus on high-end skills has not translated into inclusive growth or sufficient employment opportunities.
    • Policymakers must reimagine the path for India’s growth and prioritize inclusive economic growth.

    Key Examples and References:

    • Reference to the book “Breaking the Mould: Reimagining India’s Economic Future” by Raghuram Rajan and Rohit Lamba.
    • Examples of social and political demands for better wages and security in various sectors.
    • Mention of the mismatch between India’s skills development and job creation.

    Key Facts and Data:

    • 60% of Indians are classified as “economically weaker sections” entitled to job reservations.
    • India invested in world-class institutions of science and engineering 70 years ago.
    • The growth pattern focusing on high-end skills has not generated sufficient decent jobs for India’s masses.

    Critical Analysis:

    • The article critiques the existing economic growth pattern for its failure to generate inclusive and sustainable development.
    • Emphasis on the importance of inclusive economic growth and challenges posed by the mismatch between skills and jobs.

    Way Forward:

    • Policymakers need to reimagine India’s growth path with a focus on inclusive economic growth.
    • There are no shortcuts, and investments in the small-scale and informal manufacturing sector are crucial for sustainable development.
    • India should leverage its unmet needs to attract producers and make more for India in India, thereby growing jobs and incomes.

  • India’s jobs crisis, the macroeconomic reasons

    Burning Issue] Jobless growth in India - Civilsdaily

    Central idea 

    The article discusses the challenge of “jobless growth” in India, where the employment growth rate remains unresponsive despite increased GDP and value-added growth rates. It emphasizes the unique characteristics of India’s jobless growth regime, involving a high Kaldor-Verdoorn coefficient, and calls for a distinct policy focus on employment in addition to the traditional emphasis on GDP growth.

    Key Highlights:

    • The article discusses the distinction between wage employment and self-employment, emphasizing the challenge of inadequate labor demand, particularly for regular wage work in the formal sector.
    • India’s historical employment scenario includes open unemployment, high levels of informal employment, and a stagnant growth rate of salaried workers in the non-agricultural sector.
    • The lack of employment opportunities in the formal sector is attributed to factors such as output growth, labor productivity, and the introduction of labor-saving technologies.

    Key Challenges:

    • India faces the challenge of “jobless growth,” where the employment growth rate remains unresponsive despite a rise in GDP growth and value-added growth rates.
    • The article highlights the connection between labor productivity growth rate and output growth rate, contributing to the phenomenon of jobless growth in India.
    • The distinct form of jobless growth in India, characterized by a higher than average Kaldor-Verdoorn coefficient, poses a qualitative challenge for macroeconomic policies.

    Key Terms:

    • Kaldor-Verdoorn coefficient: A measure reflecting the responsiveness of labor productivity growth rate to output growth rate.
    • Dual economy structure: An economic structure characterized by the coexistence of a modern and traditional sector, often seen in developing countries.
    • Mahalanobis strategy: A development strategy that prioritizes heavy industrialization to overcome the constraints on output and employment.

    Key Phrases:

    • “Jobs generally refer to relatively better-paid regular wage or salaried employment.”
    • “The lack of opportunities is reflected by a more or less stagnant employment growth rate of salaried workers in the non-agricultural sector.”
    • “The positive effect of output growth rate on employment fails to counteract the adverse effect of labor-saving technologies in the Indian jobless growth regime.”

    Key Quotes for value addition:

    • “The Indian economy has historically been characterized by the presence of both open unemployment as well as high levels of informal employment.”
    • “Jobless growth in India makes the macroeconomic policy challenge qualitatively different from other countries.”

    Key Examples and References:

    • Reference to the Mahalanobis strategy focusing on heavy industrialization as a policy for overcoming constraints on output and employment.
    • Mention of the higher than average Kaldor-Verdoorn coefficient in India’s non-agricultural sector as a distinctive feature of jobless growth.

    Key Facts:

    • India’s employment growth rate in the formal non-agricultural sector has remained unresponsive despite significant increases in GDP and value-added growth rates.
    • Jobless growth in India is associated with a high Kaldor-Verdoorn coefficient, indicating a strong connection between labor productivity growth rate and output growth rate.

    Critical Analysis:

    • The article critically examines the traditional presumption that increasing the output growth rate would be a sufficient condition for increasing the employment growth rate in the formal sector.
    • It highlights the need for a separate policy focus on employment, including both demand and supply side components, in addition to the focus on GDP growth.

    Way Forward:

    • Advocate for policies addressing the skills gap and improving the quality of the workforce to make automation less attractive for firms.
    • Propose direct public job creation as a demand-side component of employment policies.
    • Suggest reorienting the macroeconomic framework to finance employment-related expenditures, including increasing the direct tax to GDP ratio and improving compliance.

  • Calibrating a strategy for India’s future growth

    India's economic growth may slow down to 7.3 per cent in 2019: Moody's - The Hindu BusinessLine

    Central idea

    The passage discusses India’s growth prospects amidst global challenges, emphasizing the need for a recalibrated growth strategy due to deglobalization trends. It highlights the shift from an export-led approach, focusing on domestic drivers and the importance of sustaining domestic savings and investment rates for a 7% plus real growth.

    Key Highlights:

    • Growth Projections: India’s growth for 2023-24 projected by RBI at 7%, IMF and World Bank at 6.3%. Strong performance in the first two quarters supports the likelihood of meeting the RBI’s projection.
    • Deglobalization Impact: Geopolitical conflicts and deglobalization trends pose challenges, affecting supply chains, international settlements, and global demand for exports.
    • Export-led Growth Shift: India’s export-led growth strategy faces challenges as the share of GDP from exports fluctuates, prompting a need for a recalibrated growth strategy.

    Key Challenges:

    • Dependence on Global Exports: Challenges arise from reduced global demand, disruptions in supply chains, and geopolitical conflicts impacting international settlements.
    • Domestic Savings Concerns: A decline in household sector savings poses a risk to India’s growth potential, potentially affecting resources available for government and corporate investment.

    Key Terms and Phrases:

    • Deglobalization: Movement away from global interconnectedness.
    • Incremental Capital-Output Ratio (ICOR): The amount of capital required for an additional unit of output, influencing achievable growth.
    • Periodic Labour Force Survey (PLFS): Source of data on employment trends and ratios.

    Key Quotes:

    • “Many ongoing geopolitical conflicts… have created a climate of sanctions.”
    • “India will have to rely relatively more on domestic growth drivers.”
    • “Facilitating absorption of productivity-enhancing technologies… would add to overall growth.”

    Key Examples and References:

    • Export Growth: Fluctuations in export share from 2003-04 to 2022-23 highlight the challenges of sustaining an export-led growth strategy.
    • Labour Force Trends: PLFS data indicates an increase in the worker population ratio but emphasizes the need for high non-agricultural growth to absorb released labor from agriculture.

    Key Facts and Data:

    • Nominal Saving Rate: Estimated at 29% in 2022-23, highlighting the critical role of domestic savings.
    • Nominal Investment Rate: Around 29% in 2022-23, with a need to increase to 35% for sustained growth.

    Critical Analysis:

    • Dependency on Global Conditions: The passage stresses the impact of changing global conditions on India’s growth strategy, urging a shift towards domestic drivers.
    • Savings and Investment Link: Emphasizes the importance of domestic savings in supporting a 7% plus real growth, highlighting concerns about a fall in household sector savings.

    Way Forward:

    • Enhanced Employment Strategies: Allocation of resources for training and skilling India’s growing working-age population is crucial.
    • Climate-Friendly Growth: Mitigate adverse impacts on potential growth by emphasizing service sector growth, known for being relatively climate-friendly.
    • Fiscal Responsibility: Adherence to fiscal responsibility targets is critical for sustaining growth, reducing the fiscal deficit, and managing debt-to-GDP ratios.

  • A $5 trillion economy, but for whom?

    Towards $5 Trillion Economy by 2025 – Transforming India

    Central idea

    The article critically examines India’s ambitious pursuit of a $5 trillion GDP by 2028, juxtaposing it with Japan’s economic trajectory. It highlights concerns about wealth disparity, inclusivity in high-tech sectors, and questions the impact on marginalized citizens.

    Key Highlights:

    • Extension of Welfare Scheme: Prime Minister Modi’s announcement to extend the Pradhan Mantri Garib Kalyan Ann Yojna by five years.
    • Concerns about Hunger: Raised concerns about persistent hunger despite the ambitious target of achieving a $5 trillion GDP by 2028.
    • Japan’s Economic Challenges: Comparison with Japan’s economic growth and the social challenges faced, including suicide rates and social withdrawal.
    • Reliance on GDP Growth: Emphasis on India’s economic growth relying on capital, productivity, and labor.
    • Wealth Disparity: Identification of significant wealth disparity, with 1% of the population owning a substantial portion of the nation’s wealth.
    • Government’s Economic Tools: Government’s identification of sectors and tools, such as the digital economy, fintech, and climate change initiatives.

    Key Challenges:

    • Impact on Marginalized Citizens: Expressing concerns about the potential adverse impact on marginalized citizens in the race towards a $5 trillion economy.
    • Wealth Inequality: Highlighting the wealth disparity issue, with 1% of the population owning a significant portion of the nation’s wealth.
    • Inclusivity in High-Tech Sectors: Concerns about the ability of a large segment of the population to participate in cutting-edge sectors such as AI, data science, and fintech.
    • Lack of Per Capita Income Estimates: Criticism regarding the absence of estimates on India’s per capita income at the $5 trillion GDP mark.

    Key Terms and Phrases:

    • Pradhan Mantri Garib Kalyan Ann Yojna: Specific welfare scheme providing free foodgrains.
    • Hikikomori: Term referring to severe social withdrawal in Japan.
    • Kodokushi: Japanese term for lonely deaths.
    • GST (Goods and Services Tax): Mention of the significant contribution from the bottom 50% of the population.
    • Inclusive Growth: Government’s emphasis on growth that includes all segments of society.
    • Insolvency and Bankruptcy Code: Part of the identified tools for achieving the $5 trillion goal.
    • Make in India: Mention of one of the identified sectors for economic growth.
    • Start-Up India: Highlighting a sector emphasized for achieving economic targets.
    • Production Linked Incentives: Part of the government’s strategy for economic growth.

    Key Examples and References:

    • Japan’s Societal Challenges: Referring to suicide rates, social withdrawal, and lonely deaths in Japan as examples.
    • Wealth Distribution Statistics: Citing wealth distribution statistics from Oxfam.
    • Minister Chaudhri’s Identification: Referring to the government’s identification of tools and sectors for achieving the $5 trillion goal.
    • Per Capita Income Comparison: Comparing per capita income between Japan, China, and India.

    Key Facts and Data:

    • Welfare Scheme Extension: Mentioning the extension of the Pradhan Mantri Garib Kalyan Ann Yojna.
    • Japan’s Economic History: Referring to Japan’s economic history and challenges post-2008.
    • Wealth Distribution Data: Citing wealth distribution data from Oxfam.
    • GST Contribution: Highlighting the significant contribution of different income groups to GST.

    Critical Analysis:

    • Societal and Economic Impact: Analyzing the potential impact of the $5 trillion goal on marginalized citizens and society.
    • Wealth Disparity and Inclusive Growth: Critical evaluation of wealth distribution and the need for inclusive economic policies.
    • Capability Mismatch: Examining the mismatch between targeted sectors/tools and the capabilities of a significant population segment.
    • Per Capita Income Concerns: Critically assessing the absence of estimates on per capita income and concerns about the inequality index.

    Way Forward:

    • Addressing Wealth Disparity: Emphasizing the need to address wealth disparity through inclusive economic policies.
    • Ensuring Inclusive Growth: Focusing on ensuring that economic growth benefits all segments of the population.
    • Skill Development and Education: Highlighting the importance of skill development and education to enable participation in emerging sectors.
    • Regular Assessment and Recalibration: Emphasizing the need for regular assessment and recalibration of economic goals to align with societal well-being.

  • Listen to the people, not the numbers

    Mere Paas Sarkaar Hai' - Vikalp Sangam

    Central idea

    India faces an income stagnation crisis despite overall GDP growth, with inadequate job quality. The global economic landscape calls for a paradigm shift towards sustainability and localized enterprises. Recognizing and valuing informal caregiving is crucial for a more equitable and economically inclusive future.

    Key Highlights:

    • Indian Economic Landscape: In the Indian economic landscape, the primary issue lies in the stagnation of incomes, not a lack of growth. Despite favorable GDP figures, there is a growing demand for job reservations, transcending caste and religion.
    • Debates and Doubts in Economic Discourse: Economists are embroiled in a debate over job creation, casting doubts on the authenticity of government data. The discourse extends to attributing the current job challenges to the policies of the present government.
    • U.S. Economic Discontent: The U.S. economy, despite positive headline numbers, faces widespread dissatisfaction among citizens. This discontent takes center stage in the lead-up to the presidential elections, with concerns about fair wages and executive compensation.
    • Call for a Paradigm Shift: A paradigm shift is urged, emphasizing a departure from conventional growth metrics to address environmental and social concerns. The call for local, green, and organic initiatives signals a quest for a sustainable economic future.
    • Recognition of Caregiving: There is a notable plea to recognize the economic and societal value of caregiving, challenging the prevailing economic paradigm that overlooks the contributions of informal work, particularly by women.

    Key Challenges:

    • Quality Jobs in India: The transition from agriculture to manufacturing in India lacks the creation of quality jobs. The prevalent scenario involves insecure, temporary employment with insufficient pay across various sectors.
    • Global Economic Landscape at a Crossroads: The global economic landscape is at a crucial juncture, necessitating innovative economic ideas. The preference for local economic webs over extensive global supply chains is indicative of a shift towards sustainability.
    • Undervaluation of Caregivers: Caregivers, predominantly women, continue to be undervalued economically. The informal caregiving sector lacks acknowledgment, perpetuating societal disparities.
    • Distortion in Economic Measurements: The distortion of economic measurements rooted in 20th-century concepts poses a challenge. The fixation on GDP growth eclipses the diminishing value of human care, leading to a skewed representation of economic health.

    Key Terms and Phrases:

    • “Economies of Scope”: Emphasizes a shift towards determining enterprise viability based on diversity rather than scale, promoting local businesses’ adaptability.
    • “Social Enterprises”: Underscore businesses contributing to social value alongside economic efficiency, reflecting a desire for a more holistic approach to economic success.
    • “Informal Work Undervaluation”: Critique highlights economists’ oversight of the economic significance of informal caregiving, emphasizing the need for a broader perspective.
    • “Paradigm Shift in Policy”: Advocates for inclusive policymaking, centering on the voices of marginalized communities to address systemic issues.

    Key points:

    • Indian Workforce Transition: Concerns about the quality of jobs in India are substantiated by a significant workforce transition from agriculture to labor-intensive sectors, marked by temporary and insecure employment.
    • U.S. Economic Dissatisfaction: In the U.S., despite positive economic indicators, dissatisfaction among citizens remains a pressing issue. Presidential engagement with autoworkers underscores concerns about fair wages and wealth distribution.

    Critical Analysis:

    • Economic Paradigm Distortion: The economic paradigm distortion reveals a prioritization of GDP growth over the diminishing societal value of caregiving. This recognition sets the stage for a necessary reevaluation of economic priorities.
    • Reforming Economic Measurements: The call for reforms in economic measurements underscores the urgency of adapting metrics to reflect the desired forms of work and enterprises for the future.
    • Neglect of Informal Caregiving: Neglecting the economic value of informal caregiving underscores the need for a paradigm shift in acknowledging the non-monetized contributions within families and communities.

    Way Forward:

    • Transition to Local Economic Webs: The emphasis on transitioning from global supply chains to local economic webs signals a shift towards sustainability, environmental responsibility, and community-focused practices.
    • Reforming Economic Measurements: Reforming economic measurements is essential to align with a broader understanding of valuable work, moving beyond GDP as the sole indicator of economic health.
    • Recognition of Caregivers: Advocating for the recognition and valuation of caregivers indicates a need for societal and economic perspectives to evolve, appreciating the importance of caregiving.
    • Inclusive Policymaking: Inclusive policymaking, with a focus on marginalized voices, is pivotal for addressing systemic issues and fostering a more equitable economic landscape. Listening to the diverse experiences of workers, farmers, entrepreneurs, and women should guide future policy formulations.

  • The Nobel in economics as a need to course correct

    Claudia Goldin Wins Nobel Prize In Economics For Studying Women At Work

    Central idea

    Claudia Goldin’s Nobel Prize win highlights the belated acknowledgment of gender dynamics in labor markets, prompting a reevaluation of entrenched biases in economics. Feminist economists stress the imperative to dismantle androcentric biases, advocating for a more inclusive economic theory that reflects diverse experiences.

    Key Terms for quality answers:

    • Androcentric biases
    • Economic man
    • Gender inequalities
    • Unpaid work
    • Masculinity in economics
    • Empirical findings
    • Feminist economists
    • Social mechanisms

    Key Phrases for improving mains score:

    • Androcentric Biases: Are gender-based prejudices or preferences that favor male perspectives, often manifested in economic theories that reflect traditional gender roles and reinforce a male-centric viewpoint.
    • Economic Man: Is a theoretical construct representing a rational, self-interested individual in economic models. It simplifies human behavior for analytical purposes but is critiqued for its failure to capture the complexities of real-life decision-making.
    • Humanizing Economics: Involves infusing empathy, emotions, and a more realistic understanding of human behavior into economic analyses, recognizing that individuals are not solely motivated by rational self-interest.

    Key Highlights:

    • Claudia Goldin wins Nobel Prize in Economic Sciences for gender dynamics research in labor markets.
    • Recognition prompts reflection on the delayed acknowledgment of gender-focused economic research.
    • Economics traditionally male-dominated, leading to the marginalization of gender inequality issues.

    Challenges:

    • Under-representation of women in economics.
    • Androcentric biases in economic theories, perpetuating gender hierarchies.
    • Economic models ignoring gendered experiences and unpaid work, especially by women.
    • Limited understanding of non-market spaces like households, hindering accurate economic analysis.
    • Economic man assumptions perpetuate gender stereotypes and fail to question existing hierarchies.
    • Masculinity in economics detaches the discipline from gendered experiences, particularly of women.

    Analysis:

    • Feminist economists call for an economic theory free of androcentric biases to address gender inequalities.
    • Economic models fail to account for the contributions of women as unpaid workers, impacting the accuracy of empirical findings.
    • Biases in economic theory can affect statistical methods and interpretation of empirical results.
    • Economic rationality may overlook social mechanisms, leading to misinterpretation of empirical findings.

    Way Forward:

    • Educational Initiatives: Propose educational programs to sensitize economists to gender biases and promote inclusivity.
    • Policy Changes: Advocate for policy changes within academic institutions to encourage diverse perspectives in economic research.
    • Recognizing Diverse Contributions: Encourage acknowledgment of the work of economists from diverse backgrounds.
    • Inclusive Policies: Advocate for policies that actively promote diversity and inclusivity within economics departments.
    • Training Economists: Suggest incorporating training on mixed methods in economics education.
    • Interdisciplinary Collaboration: Promote collaboration with sociologists, anthropologists, and other disciplines to enrich economic research

    Conclusion:

    Claudia Goldin’s Nobel Prize win serves as a catalyst for a much-needed evolution in economic thinking. By addressing historical biases, overcoming gender-based challenges, and embracing a more inclusive and nuanced approach, the discipline can truly reflect the complexities of reality.

  • Bidenomics and Global Economic Landscape in 2024

    Central Idea

    • The year 2024 is poised to be a momentous one for the global economy, marked by significant elections in some of the world’s largest economies, including India, Russia, the UK, the EU, and the US.
    • “Bidenomics” is the nickname for the economic vision of President Joe Biden. It’s used to convey his administration’s economic gains, policies and plans.

    Bidenomics and its Relevance

    • Policy Shifts: The potential election outcome in the US could have far-reaching consequences, especially concerning ‘Bidenomics’—President Biden’s distinctive economic policy approach.
    • Radical Departures: Trump’s policies diverged significantly from established US and global norms, with actions like withdrawing from the Paris Climate Agreement and adopting protectionist trade policies against nations like China.
    • Bidenomics: President Biden introduced a policy shift aimed at reversing decades of economic trends, emphasizing income equality and reducing the influence of big corporations.
    • 3 major aspects of Bidenomics:
    1. Public Investments: Focus on smart investments in infrastructure and clean energy.
    2. Empowering Workers: Prioritizing workers’ rights and education to strengthen the middle class.
    3. Promoting Competition: Encouraging competition to reduce costs and foster small business growth.

    Performance of Bidenomics

    • Macro Indicators: On a macroeconomic level, Bidenomics has shown positive results, as indicated by GDP growth, unemployment rates, and inflation trends.
    • GDP Growth: The US has outperformed major developed nations in terms of GDP growth, with a rapid post-pandemic recovery.
    • Unemployment: Unemployment rates have decreased significantly under Biden’s leadership, with job creation outpacing the number of job seekers.
    • Inflation: However, inflation spiked due to external factors but has since moderated.

  • Women and water and the potential of green jobs

    What’s the news?

    • Water, a vital resource for life, is poised to play a central role in the transition to a green economy. This transition brings not only environmental benefits but also the potential to drive significant employment growth, particularly for women.

    Central idea

    • Water is essential for a green economy, offering immense potential for job generation, particularly for women. Women globally are pivotal players in water management, yet their expertise remains underutilized. As green jobs surge in India, how can women’s roles in water management be enhanced and recognized?

    Backdrop

    • Green Jobs in Water Management: These jobs contribute to preserving or restoring environmental quality. A promising estimate by the International Labour Organisation posits that jobs in this sector could escalate from 3 million (2020) to 19 million by 2030 in India.
    • Water and Global Employment: A 2016 UN report underscores that nearly 1.5 billion people, or half the global workforce, are in water-related sectors. Water thus fosters both direct (managing resources, infrastructure, services) and indirect jobs.

    Harse reality

    • A World Bank evaluation of 122 water projects found that those involving women were six to seven times more effective than those that did not.
    • Despite this evidence, women constitute less than 17 percent of the paid workforce in water, sanitation, and hygiene in developing economies, and women’s representation as technical experts remains disproportionately low.

    The Role of Women in Efficient Water Management

    • Household Water Management: Women are typically responsible for managing water within households. They oversee water collection, storage, and distribution for domestic use, ensuring a safe and sustainable water supply for their families.
    • Community Engagement: In many communities, women actively engage in the management of communal water sources. They take the lead in maintaining these sources, making sure they remain accessible and functional for all community members.
    • Agriculture: Women play a crucial role in agriculture, which is a major consumer of water resources. They are involved in activities such as irrigation, crop cultivation, and livestock care. Their knowledge of efficient water use is vital for agricultural sustainability.
    • Environmental Stewardship: Women often act as environmental stewards, safeguarding local ecosystems, rivers, lakes, and forests. Their traditional practices and knowledge contribute to the preservation of water resources and the environment.
    • Community Development: Women actively participate in community development projects related to water infrastructure, sanitation, and hygiene. They serve on water and sanitation committees, helping plan and implement projects that benefit the entire community.
    • Innovative Solutions: Women frequently devise innovative solutions to address water-related challenges. They may create rainwater harvesting techniques, sustainable farming practices, or household-level water treatment methods, enhancing water resource management.

    Unlocking Opportunities through Government Programs

    • Traditionally, women’s involvement in water management has been limited to voluntary or part-time roles, often at the lowest level of decision-making.
    • Recent government initiatives in India, such as the Jal Jeevan Mission, Atal Mission for Rejuvenation and Urban Transformation, Atal Bhujal Yojana, and Jal Shakti Abhiyan, present an opportunity to expand women’s participation in water management and provide access to decent work.
    • These programs prioritize community ownership and support both direct and indirect jobs.

    The Potential of Jal Jeevan Mission

    • The Jal Jeevan Mission, in particular, has the potential to generate a substantial number of jobs.
    • A study by the Indian Institute of Management, Bangalore, estimated that the mission could create millions of person-years of direct and indirect employment, although gender-disaggregated data are lacking.

    Way forward

    • Addressing Skill Gaps and Capacity Building:
    • Water management jobs require specific skills and training, yet there is often a gap between the skills needed and the expertise available.
    • While some training programs exist for wastewater treatment and watershed management, they do not cover emerging employment opportunities in the water sector.
    • Promoting Sustainable Employment:
    • Despite robust policies for community participation, sustainable employment creation has been lacking.
    • Investing in training women, providing access to finance, and leveraging self-help groups can foster women’s self-employment in water management, strengthening water security in both rural and urban areas.

    Conclusion

    • Government initiatives such as the Jal Jeevan Mission are poised to unlock this potential. By addressing skill gaps and promoting women’s participation, India can not only create green jobs but also empower women in the vital task of water management, contributing to a more sustainable and inclusive future.

  • Circular migration

    What’s the news?

    • Circular migration gained prominence in the wake of globalization and technological advancements, facilitating easier mobility. As the world grapples with migration challenges, circular migration emerges as a balanced approach.

    Central idea

    • Circular migration, characterized by the cyclical movement of people between their country of origin and a destination country in search of seasonal employment, has gained significance in the global context. It offers unique opportunities and challenges in the realm of migration policy and development.

    Defining Circular Migration

    • Philippe Fargues defines circular migration based on specific criteria, including temporary residence, multiple entries into the destination country, freedom of movement between origin and destination, legal rights for migrants, protection of their rights, and a demand for temporary labor in the destination country.
    • A key aspect is the completion of at least two loops between two countries, signifying repeated movement.
    • For instance, if a migrant moves from country A to B and back to A, they are considered a return migrant. However, if they continue to country B again, they have completed two loops, earning them the label of a circular migrant.

    Circular Migration as Public Policy

    • For countries of origin: Remittances from circular migrants boost the domestic economy, fostering infrastructure development and improving living standards. However, it also poses the risk of losing skilled individuals to other nations.
    • For destination countries: Circular migration provides a source of low-skilled labor while minimizing permanent population growth

    The Advantages of Circular Migration in India

    • Rural to Urban Migration:
    • The growth of jobs in sectors like manufacturing, construction, and services has driven a substantial flow of migrants from rural areas to urban cities.
    • This trend has been particularly pronounced between 2004–2005 and 2011–2012 when the construction sector witnessed a significant increase in employment, especially for rural males.
    • This movement has provided rural populations with access to urban employment opportunities.
    • Inter-State Migration:
    • Uneven development following liberalization policies has led to inter-State migration. States like West Bengal, Odisha, and Bihar have witnessed high rates of out-migration.
    • While Delhi was historically a prominent destination, recent trends indicate an increased flow of migrants to southern States as well.
    • Economic Benefits:
    • Migrants often transition from agricultural jobs in their home states to low-skill jobs in destination states.
    • This shift typically results in increased income, with daily wage laborers in Kerala earning substantially more compared to their counterparts in states like West Bengal.
    • Household Welfare: Circular migration contributes to better household welfare through remittances sent back by migrants. These funds support improved nutrition, enhanced access to education and healthcare, and an overall increase in the standard of living for migrant families.
    • Empowerment of Women: The absence of male family members due to migration often leads to increased autonomy and decision-making power for women in migrant households. This shift in gender dynamics can have positive social and cultural implications.

    Challenges

    • Exploitation and Unsafe Conditions: Migrants, especially in southern States, often find themselves vulnerable to exploitation by middlemen or brokers. They may be subjected to unhygienic and unsafe working conditions, often without protective equipment.
    • Language Barriers: Language differences pose a significant obstacle for migrants, particularly when migrating to regions where the local language differs from their native tongue.
    • Resentment and Wage Disputes: Indigenous wage groups and labor unions may resent circular migrants, viewing them as competitors willing to work for lower wages. This can lead to wage disputes and conflicts.
    • Subsistence Migration: Many circular migrants engage in subsistence-level employment, with limited opportunities for savings or asset creation. Jobs are often seasonal and irregular, contributing to economic precarity.
    • Return Migration during Crises: The COVID-19 pandemic highlighted the vulnerability of circular migrants. When a lockdown was imposed in 2020, many migrants embarked on long journeys back to their hometowns due to the lack of job opportunities in the host States.

    The Way Forward: Measures to fully unlock the potential of circular migration

    • Ensuring Migrant Rights: Robust protection of migrant rights is crucial to address exploitation and abuse.
    • Skills Training: Providing migrants with skills training and language proficiency programs can enhance their employability and integration into host communities.
    • Safety Nets: Establishing social safety nets for circular migrants during times of crisis, such as the pandemic, is essential to prevent humanitarian disasters.
    • Integration Efforts: Encouraging integration initiatives in destination areas can help migrants feel more included and less marginalized.
    • Data Collection and Research: Governments should invest in data collection and research to better understand the extent and dynamics of circular migration.

    Conclusion

    • Circular migration presents a viable pathway to balance the needs of development and individual economic advancement. As circular migration continues to shape the global landscape, it is imperative that governments and policymakers adapt their strategies to harness its potential for the greater good.

  • Propelling India’s development the right way

    What’s the news?

    • The op-ed acknowledges India’s technological achievements, emphasizing the need to revive state support, particularly in emerging sectors. It underscores the urgency of addressing persistent inequalities and promoting inclusive economic growth for a more prosperous future.

    Central idea

    • Aim for the moon is often synonymous with bold ambition, verging on recklessness. India’s foray into space research in the 1960s was initially met with skepticism, given its status as a young and struggling nation. Today, India boasts remarkable achievements in space exploration. However, these accomplishments raise a pertinent question: How do these feats align with the persistent poverty and destitution afflicting millions of Indians?

    Historical Foundations of India’s Scientific and Technological Capabilities

    • Indian Institutes of Technology (IITs): Between 1951 and 1961, India founded five Indian Institutes of Technology. These institutions rapidly gained global recognition as centers of academic excellence. They played a critical role in nurturing a talent pool of engineers and scientists who would later contribute to India’s technological advancements.
    • Indian Institutes of Management (IIMs): In 1961, India inaugurated the first two Indian Institutes of Management. These institutions aimed to foster managerial talent, aligning with India’s broader goals of building expertise and human capital in various fields.
    • Public Sector Units (PSUs): Throughout the 1950s and 1960s, India established numerous public sector units across diverse industrial sectors. These sectors included steel production, fertilizer manufacturing, machine tools, electric machinery, drug production, and petrochemicals. These PSUs not only bolstered industrialization but also served as vital testing grounds for emerging technologies.

    India’s Moonshot Development Strategy

    • The moonshot development strategy aimed to leverage modern industrialization to address developmental challenges.
    • Early visionaries like Vikram Sarabhai envisioned satellite technology for nationwide communication, agricultural improvements, and healthcare education.
    • Nevertheless, this approach faced criticism for its heavy reliance on public investment and the alleged misdirection of resources toward capital- and technology-intensive industries instead of labor-intensive sectors.

    How have inequalities posed significant hurdles to India’s progress and development?

    • Lack of Effective Government Intervention:
    • India’s development strategy’s lackluster record was not due to excessive government emphasis on technology but rather because the government could not effectively address inequalities and ensure social development.
    • One of the missed opportunities was the failure to implement a successful program of land redistribution.
    • Ownership Disparities: Ownership of assets remains significantly low among socially oppressed communities, including Dalits and the Scheduled Caste (SC) population. This lack of asset ownership creates barriers to accessing education and economic opportunities.
    • Education Underinvestment: India has consistently underinvested in basic education for the masses. This educational deficit further exacerbates inequalities and limits opportunities for those who are socioeconomically disadvantaged.
    • Replicated Inequalities in the Labor Market: The historical inequalities in social and economic spheres translate into labor market disparities. Better-paying jobs tend to be concentrated among privileged groups with greater access to higher education, further deepening the divide.
    • Employment Disparities: The data from the Periodic Labour Force Survey highlights significant disparities in employment. In 2021–22, a higher percentage of SC workers (38.2%) were engaged in casual employment, which often involves manual labor, compared to workers from other general category castes (11.2%).
    • Contrast with East Asian Countries: East Asian countries like Japan and China implemented land reforms and other measures in the 1950s that created a relatively egalitarian social structure. This laid the foundation for progressive economic and social changes in the subsequent years.
    • Impact on Industrial and Economic Growth: Inequalities have negatively impacted industrial and economic growth in India. The skewed domestic demand, driven by the upper-income classes, has hindered the growth of manufacturing sectors producing high-quality, mass-consumption goods like food products and garments.
    • Narrow Social Base for Entrepreneurship: Entrepreneurship in India has emerged from a narrow social base, limiting the diversity and inclusivity of the entrepreneurial ecosystem.

    Way forward

    • Reinstate state support:
    • India should recognize the strengths and weaknesses of its post-independence development strategy.
    • The audacious attempt to build technological and industrial capabilities with generous state support was the right approach.
    • India must reinstate such efforts, especially in rapidly growing economic sectors like semiconductors and biotechnology.
    • Abandoning industrial policy in a globalized economy, as done after 1991, is a mistake, especially when countries like the United States and China actively support their industries.
    • Make Economic Growth Inclusive:
    • India needs to redouble efforts to ensure that economic growth is inclusive and broad-based.
    • Access to education, particularly higher education, should be made accessible to all, including marginalized communities.
    • Strengthen human and social capabilities:
    • While technology has played a significant role in India’s development, it’s equally important to focus on building human and social capabilities.
    • Empowering the billion-strong population with the skills and capabilities required for upward mobility is crucial.
    • Achieving this would be equivalent to a significant leap in economic progress.

    Conclusion

    • India’s journey toward technological prowess should coexist with a commitment to alleviate inequality and ensure inclusive growth. A moonshot approach to development, grounded in state support for technological advancement, is imperative. By reconciling these objectives, India can pave the way for a prosperous and equitable future.