Employment and Inclusive Growth in India:
Emerging pattern and perspectives

Ramu is a graduate who is searching for a job. The degree in his hands, the desire to work, and the financial need are burdening him to get a job to earn a living and support his family by lending a helping hand. But the lack of opportunities as well as a lack of practical knowledge and skills are the dragging or pulling factors not letting him achieve his goals. This story presents the real issue engraved in the system.

The agriculture sector is facing the problem of ‘disguised unemployment’ where marginal productivity of labor is zero. Around half of the population is still in the agriculture sector, but the sector contributes merely 1/4th to the GDP of India. This presents a grave picture of unemployment.

The industrial sector – with emerging automation and the vision of the Fourth Industrial Revolution – is a danger to the highly populated society of India, which is in much need of jobs. ‘Automation’ requires the skill and know-how to operate the machinery as well as reduces the load, thereby reducing the workers employed. Thus, practical knowledge, linking Industry with educational institutions to make them understand the demands of the industry, and apprenticeship programs as envisaged by the government must be implemented to increase the labor force and provide employment to all.

The services sector, which is a booming sector, also faces no fewer challenges. The lack of skills and a poor practical and application-based education system is the concern. It can be solved by the Skill India Mission as well as various mechanisms to boost application-based know-how. This sector provides maximum employment and is a shining spot for India. It contributes in bulk to the GDP of India.

So, the emerging question is how to cater to the changing demands of the sectors and why we need employment?

Employment provides economic benefits. This is the utmost necessity of an individual to cater to his day-to-day needs as well as necessities. This leads to the empowerment of an individual as well as the growth of the nation. It is the mechanism of ‘fair’ equality of opportunity to an individual where he can develop his skills, art, and knowledge and consequently apply them to earn his living.

Employment ensures the social status in the system and ‘the sense of contribution’ to the nation and society by working hard with full potential. It Assures a position to fight with the menace of society structured due to social taboos. For example, the Dalits are forced to do menial jobs irrespective of their skill; thus, fair opportunity is a step to solve the situation by providing employment opportunities.

It is a step towards breaking the cultural barriers and rising above in society in all ways – economically, financially, socially, morally, and thus, leading to growth.

‘Inclusive growth’ is ‘growth for all,’ defined as opportunities for all to explore their self-talent, provide ample ways without any bias or favor, and dream of an ‘egalitarian society’. ‘Adam Smith’ in his ‘Wealth of Nations’ book proposed that every rational human being can individually work to excel, and then by the development of every individual, the entire country will reach a higher ladder of growth. But it failed to account for inclusive growth in many developing countries like India, Brazil, etc. The Trickle-Down effect is not visible. Thus, Amartya Sen talks about the state as a rescue force providing health, educational opportunities to all which will lead to inclusive growth.

The grim picture is: the top 10% wealthy population in India accounts for the holding of approximately 90% of the wealth, and the top 1% of the richest accounts for not less than 70% of the wealth and holdings. This depicts the grave inequality in the present scenario – where ‘one in eight children’ sleeps hungry due to the lack of money, food, and opportunities.

How can employment lead to Inclusive Growth? How can employment be generated?

Employment empowers individuals and provides a safety net to individuals:
It provides the mechanism by which an individual contributes to society, family, as well as the entire nation by adding up to the rise in GDP of the nation.

Employment generation and the role of the state:
The role of the state, as well as the individual’s desire and capability, play the right mix to lead towards employment and growth for all.

Various Interventions by the state to increase the skills of individuals:
Skill India mission, Pradhan Mantri Kaushal Vikas Yojana – which is a program for skill certification by the authorized National Skill Development Authority and making individuals ready for the job; Deen Dayal Upadhayay Grameen Kaushal Yojana – for the skilling of ‘rural’ youths of age 17-35 years as per the needs of the industry.

Various measures to boost entrepreneurship are Startup India:
By incentivizing youths to innovate and take risks to be “job providers rather than job seekers.” Stand UP India scheme to empower entrepreneurship among (Dalits) scheduled youths (SC/ST) and women entrepreneurship.

A shift in the education system:
By making it more application practical-based rather than merely rote memorization, by increasing linkages between the education sector and the industry, by global linkages and taking lessons from it, as well as a step towards inclusive education (Right to Education). The increasing training institutions, incubator centers, research parks, and the opportunity to provide ample training by the state can generate employment for all.

Empowerment of women in employment opportunities is a step towards inclusive growth:
As Christine Lagarde (IMF Chief) says, ‘the participation of women in the labor force will increase the GDP by about 27%. Thus, inclusive growth is possible by engaging and encouraging women’s participation in the growth to lead to inclusive growth.

The increasing informalization or unorganized sector jobs provide employment, but this employment without any job guarantee, without fair wages, high risk, and no social security makes it a risky affair. Thus, individuals face various problems. Thus, ‘proper fair employment’ – formal with social security, fair wages, fair opportunities without any favoritism or nepotism, favor or bias can lead towards inclusive growth.

What are the problems of growth without inclusion?

It leads to poverty and a vicious cycle of Unemployment – Poverty – Inequality. Inequality has the power to destroy the entire structure. It leads to stigmatization, deprivation by some sectors/group of people fleeing the hunt of unemployment. Thus, steps like ‘Make in India’ are taken to ensure generating employment opportunities.

Thus, inclusive growth is a sustainable growth with equality among individuals as our ‘constitution’ envisages, and our state tries to achieve it. The progressive taxation system, CSR opportunities (Corporate Social Responsibility) by the companies as a measure to pay and contribute on account of their usage of the resources of the society are the ways towards inclusive growth. The state should proactively try to achieve it by giving health, education, and opportunities to all citizens without any favor, as well as individuals, must strive their best to achieve higher ladders of society by contributing to the nation. Hence, it is a vision of the Prime Minister for the growth of all – ‘Sabka Saath – Sabka Vishwas,’ which is a step towards growth – inclusive and the empowerment of all.