Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
6) Indian economic policy has not allowed firms to be created and to grow and prosper at the levels required for adequate job creation. Examine. (250 Words)
Why this question
Generation of employment has been a huge focus of the governments over the years. India’s demography demands accelerated pace of job creation, yet numbers do not suggest that job market in India is booming. Hence the effect of government policy on employment has to be understood
Key demand of the question
The question is not focussed on why the need for job creation or the reasons why jobs are not being created. The focus is very specific – impact of government’s policies on the size of the firms which affects job market.
Examine – The focus has to remain on the demand of the question. We have to get into the depth of why firms in India suffer from Peter Pan syndrome, why India is undergoing premature deindustrialization. The reason has to be limited to government’s economic policies.
Structure of the answer
Introduction – Mention the employment scenario in India and a brief mention about the Peter Pan syndrome of Indian firms. Link how size of the firm is connected to employment
Body – Discuss the government’s policy which have resulted in the firms not growing big. Talk about – Laws (Labour laws), Infra, taxation policies, policies related to human capital growth.
In the next part, critically discuss why some of the initiatives of the government to allow firms to grow are either in formative years or have not picked pace. Talk about start up India, make in India etc
Thereafter discuss what should be done to ensure that the demographic dividend does not turn into demographic bulge.
Conclusion – highlight the importance of creating jobs in India and how time is running short in light of rapidly changing technology and demands.