Paving The Way For Inclusive Growth - Eastern Mirror
Sunday, July 21, 2024

Paving the Way for Inclusive Growth

By The Editorial Team Updated: Jul 03, 2024 11:54 pm

Despite an impressive growth rate, India is unable to effectively tackle the large economic disparity prevailing between the haves and have-nots. Several economists argue that inequality will continue to haunt India as the country has failed to create adequate employment avenues for those without the necessary capital to start a businesses or increase their earnings. Terming the present employment scenario in the country as dismal, experts have warned that absence of inclusive growth will further exacerbate inequalities and could lead to social unrest.  Equal distribution of wealth is an essential weapon to tackle the inequality problem. While some may find fancy in imposing heavy taxes on the rich, it is nothing but a double-edged sword as such a step may lead to the flight of capital from India to other countries with more liberal tax patterns. Already, a large number of Indians have left the country to settle abroad as they found the country unsuitable for business and many more may follow suit if India introduces a stricter tax regime. In such a situation, the job market will face considerable contraction leaving people jobless. Infact dearth of funds is one of the major reasons behind shortage of jobs in the country. A recent survey has claimed that 40 percent of the country‚Äôs wealth lies with only one per cent of the population, while the rest are struggling hard to get a share of it. So the majority of the Indian populace do not have the investment power required to begin new enterprises.

Creating jobs is another way to address inequality, but adopting the policy is easier said than done as the country has not been able to create adequate number of jobs for several years. Even employment in the government sector has gone down considerably due to the disinvestment in public sector units (PSUs). Moreover, a serious financial crunch has prevented the government from filling vacancies for many years now. Employment in the Indian Railways, known to be the biggest employment provider in the country, has gone down considerably as nowadays the lifeline of the nation opts more for outsourcing to keep its operating ratio under check. Lack of skilled manpower is also putting a dampener on raising the employment rate. With Artificial intelligence (AI) entering the scene, the demand for labourers has gone down fast. This is an alarming situation for the country as two-thirds of the Indian workforce is engaged in the unorganised sector. Many have already lost their jobs due to AI onslaught, while the axe may fall on others sooner than later. So there is an urgent need to impart skill training to all those in search of jobs for their livelihoods. To achieve this goal, the need is to prepare a curriculum based on the needs of the employment market so that job aspirants can be educated and trained from an early age. This is a crucial component that must be established and implemented if India serious about paving the way for inclusive growth.

By The Editorial Team Updated: Jul 03, 2024 11:54:47 pm
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