Mains Paper 3: Economy | Development & employment
From the UPSC perspective, the following things are important:
Prelims level: Not much
Mains level: Need of focusing on the farming reforms for job growth and sustainable income opportunities for farmers
If only agriculture can be turned economically viable and ecologically sustainable, it can easily take away much of the pressure the country faces in creating additional employment.
Worsening Employment Situation in India
- IN March 2018, an estimated 2.5 crore people, more than the population of Australia, applied for about 90,000 positions in the Indian Railways.
- In 2015, over 23 lakh candidates, including 22 lakh engineers and 255 PhD holders, had applied for 368 posts of peon in the Uttar Pradesh state secretariat.
- This is borne by the fact that India’s unemployment rate rose to a 45-year high during 2017-18.
Divergence in Economic Growth and Employment
- India’s economy has been on a growth trajectory in the past four years – growing at an average exceeding 7 per cent per annum — the failure to provide jobs to millions of people is a clear-cut pointer that relying on a higher GDP is not the answer to creating more jobs.
- A higher GDP does not translate into more employment opportunities.
Is migration from agriculture area to cities good?
- Many economists term the migration from agriculture to be a welcome sign.
- Going by the World Bank prescription,which was doled out back in 1996, India was directed to go for a population shift, translocating 40 crore people from rural to urban areas in the next 20 years, by 2015.
- However, these 40 crore people being forced to migrate from the villages are ‘agricultural refugees’.
- In the absence of alternative employment opportunities, these millions are swarming into the cities looking for menial jobs.
- The general understanding is that those moving out of agriculture will be automatically absorbed by the manufacturing sector.
- It was primarily for this consideration that the National Skill Development Policy aimed at reducing the population involved in agriculture from 52 per cent to 38 per cent by 2022.
- But the reality is that during the period, agriculture saw an unprecedented rate of migration; manufacturing, too, slumped, causing a loss of 5.3 crore jobs.
The solution lies in agricultural reforms
- Agriculture is the biggest employer, employing 52 per cent of the population as per the 2011 Census.
- The resolution of the monumental employment crisis that India faces actually lies in the crop fields.
- If only agriculture can be turned economically viable and ecologically sustainable, it can easily take away much of the pressure the country faces in creating additional employment.
- it requires is a paradigm shift in economic thinking, which begins by first treating agriculture as an economic activity.
- Making farm livelihoods economically sustainable should be the first step towards achieving the objective of ensuring gainful employment for marginalised communities.
- Once agriculture becomes economically viable, it will reignite the rural-based industry, and in the process trigger a reverse migration.
- Only agriculture has the ability to reboot the economy. The increased demand a refurbished agriculture will create will be phenomenal, leading to a spurt in industrial production.