02 May 2025 : Daily Answer Writing
Q1) Unemployment continues to challenge the Indian economy. Examine the short-term and long-term policy measures that can effectively tackle joblessness in the country.
Answer
India’s persistent unemployment problem, especially among its youth, remains a critical concern despite economic growth. The pace of job creation has not matched the expanding workforce. It is essential for both the central and state governments to focus on designing cost-effective and well-implemented employment strategies.
Short-Term Measures
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Rural Employment: Schemes like MGNREGA have aimed to offer employment to rural households. However, challenges such as delayed payments, insufficient workdays, and limited unemployment benefits persist. Addressing these issues is vital to improving its effectiveness.
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Urban Employment: Initiatives like the proposed Decentralised Urban Employment and Training (DUET) scheme can provide urban jobs through public infrastructure projects and skill development.
Long-Term Strategies
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Skill Development: A large-scale vocational education and apprenticeship programme linked to industry is crucial to enhance employability and bridge the skills gap.
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Reform of Subsidies: Redirecting capital subsidies towards wage subsidies can promote labour-intensive sectors and generate more employment.
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Enterprise Support: Providing managerial training and technical support to non-farm enterprises can help improve productivity and employment potential.
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Boosting Demand: Raising the purchasing power of low-income groups through direct income support can stimulate demand and create jobs. A minimum income floor can also enable workers to transition out of exploitative or low-paying jobs.
Conclusion
These strategies can be financed by rationalising subsidies for wealthier sections and introducing progressive taxation measures, such as capital gains, inheritance, and wealth taxes. Such redistributive reforms can support inclusive employment generation without widening fiscal deficits.
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