Easing economic woes takes precedence over job creation efforts

The ‘ease of doing business’ must now become subordinate to the ease of living and earning for all citizens

Source

The Hindu — Business →

Quick Revision

Prelims-testable facts

01The Indian economy is consumption-driven.
02In a consumption-driven economy like India, employment is both the driver and the outcome of growth.
03The scale of underemployment in India is striking, with over 53% of graduates working in semi-skilled jobs.
0446% of low-skill workers in India earn less than ₹1 lakh a year.
05Economic policy on job creation focuses on improving living standards through direct job creation rather than solely on economic output.
06The Ease of Living Index has become subordinate to the ease of doing business as a priority for Indian policymakers.
07India's unemployment rate is characterized by 'jobless growth', where economic growth does not translate to employment opportunities.

Trap alerts

Most people think that India's unemployment problem can be solved solely through job creation, but actually it requires addressing structural inequalities and improving living standards as well.
Most people think that the Ease of Doing Business Index is a key indicator of economic success, but actually it has become subordinate to the Ease of Living Index in Indian policy priorities.
Most people think that underemployment in India is limited to graduates working in low-skilled jobs, but actually over 53% of graduates are working in semi-skilled jobs.

Current-affairs link

The Production Linked Incentive Schemes (PLIS) and e-SHRAM Portal are initiatives aimed at promoting job creation and skill development in India.

Mains Practice Question

Critically discuss the relationship between economic growth and unemployment rates, using India's experience since 2019-20 as a case study.

250 words

Practice this in the exam hall →

Prelims Practice MCQs

Single factmedium

Which aspect of economic policy should be prioritized to address the issue of unemployment?

A.Ease of doing business
B.Ease of living and earning for all citizens
C.Fiscal discipline
D.Monetary policy

The 'ease of doing business' must now become subordinate to the ease of living and earning for all citizens, as emphasized by recent economic policies.

Multiple statementsmedium

Consider the following statements regarding Unemployment Rate in India: 1. India's unemployment rate has been rising since 2019-20. 2. The Centre for Monitoring Indian Economy (CMIE) is a government agency responsible for monitoring employment rates. 3. The 'ease of doing business' is directly linked to the rise in unemployment rate. How many of the above statements are correct?

A.Only one
B.Only two
C.All three
D.None

Statement 1 is true because it aligns with fact #2. Statement 2 is false because CMIE is not a government agency responsible for monitoring employment rates. Statement 3 is false because there is no direct link between 'ease of doing business' and unemployment rate mentioned in the facts.

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