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Critically analyse the risks of economic policy parochialism at the state level in India with respect to Job Quotas.

Topic: GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

GS-3: Government Budgeting.

3. Critically analyse the risks of economic policy parochialism at the state level in India with respect to Job Quotas. (250 words)

Reference:  Live Mint

Why the question:

The article explains in what way State job quotas are symptoms of a bigger unemployment crisis.

Key Demand of the question:

Discuss the issues arising out of such parochialistic policies by the States and suggest solutions to address them.

Directive:

Critically analyze – When asked to analyse, you have to examine methodically the structure or nature of the topic by separating it into component parts and present them as a whole in a summary. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.

Structure of the answer:

Introduction:

Start with brief background of the context of the question.

Body:

First explain the Economic policy parochialism at the level of states. Haryana job reservation legislation: Requires private employers to reserve 75% of new jobs that pay 50,000 or less per month for residents of the state.  Similar measure in move-in Jharkhand and proposals in Tamil Nadu.

Discuss the reasons in detail.

Then discuss the key issues accompanied by such policy parochialism.

Present the policy measures in this direction.

Conclusion:

Union government shall focus on the parlous economic situation and proactively act to realize the scope of optimistic economic growth projections.