The 2024 Lok Sabha General Elections in India have come to an end, and the results have been declared. Although Prime Minister Narendra Modi is ready to begin his third term in Office, the BJP has lost its majority in the Lok Sabha. Prime Minister Narendra Modi’s upcoming term in Office will not be like any other term which he has served previously, be it as the Chief Minister of Gujarat, or as the Prime Minister of India since 2014.
Modi’s “absolute” powers have been diminished by the limited number of seats which the BJP has won, and by the extra seats which the allied parties have managed to secure compared to the 2019 Indian General Elections. The resurgence of the Opposition party aka the Indian National Congress, and the narrow margin of victory of the NDA (National Democratic Alliance), reveal that the people of India are more concerned about vital real-world issues such as unemployment and inflation, at large.
As India forms a new Government, the people of India have certain hopes and aspirations. A coalition government at the Centre is expected to enhance democracy and respect democratic institutions. The Indian voter wants the Government to invest in employment and contain inflation. Modi’s third term in governance already proves to be rocky, and whether Modi and the National Democratic Alliance will be able to survive their full term shall be a test of time.
As a student, I feel that the newly-elected Government should leave no stone unturned to make job creation the first priority for the next five fiscal years. What India needs now are greater creation of jobs, and more equitable income distribution. Although the Indian economy has been growing at a fast pace, the trend of “jobless growth” continues to mar the nation’s overall growth and development. More equitable income distribution will reduce income inequalities in the country. Presently, the rich continue to get richer, and the poor continue to get poorer, in the country. The GDP of the country is concentrated in the pockets of only a few.
This is something alarming that concerns India’s young minds. As the BJP will now depend heavily on regional allies such as the Telugu Desam Party and the Janata Dal (United), the BJP can make policy adjustments only with their consultation. The BJP and the allies are expected to focus more on welfare measures and developmental policies. It is expected that the Modi 3.0 Government will boost consumption in the economy, making consumption-led-development a key measure of the Government for promoting economic growth in the country.
However, revival of consumption is possible when the Government focuses more on the creation of good jobs for the people, focusing on the quality of jobs being created. Although the Indian economy has been growing at a high rate of 8.2% (as per the last fiscal year), the Government needs to look beyond the “growth factor”, and ought to identify and work on the various other problems that continue to plague the economy.
Private consumption expenditure in India has been on the decline. In the last fiscal year, private consumption expenditure stood at a mere 4%. In order to revive consumption, the Government ought to frame and implement policies that will boost employment and improve the quality of job opportunities. For instance, the Government should formulate schemes that encourage small businesses and incentivise them to expand their dealings.
The Indian economy continues to enjoy sustainable measures of economic growth and economic output, but employment creation has remained stagnant. Between 2012 and 2019, employment creation in India stood at 0.01% which is a dismal figure. Though youth unemployment in India has shown a downward trend in the last five years, young employees are not satisfied with the kind of work that they engage in. Many of the young adults who participate in the labour market have taken up any available work because the economy does not offer them jobs of their choice or calibre.
Another concerning trend is the declining participation of women in the labour force. Recent trends reveal how many women in India tend to not work at all, or tend to work in sectors outside the labour force. Women face discrimination at their workplace due to which the number of women working in high-skill professions such as engineering and medicine is falling rapidly. Most women still prefer to work in “traditional” professions such as teaching. Women stay disadvantaged because existing skilling and employment generation programmes do not favour female workers, further exacerbating gender disparities.
Quotas and reservations for women might help if they are properly monitored and implemented. Due to ingrained patriarchy in society, the Government should intervene in how households typically function, by favouring women. Gender sensitivity should be incorporated in the designs of all employment and skilling schemes. Women should enjoy certain social benefits, such as state funding for maternity leave, which might encourage them to participate more willingly in the labour force.
Job creation, generation of employment opportunities, revival of consumption, and incentivisation of small businesses are the needs of the hour. All things said, we all know how difficult it is for the Government to create jobs in a country that is home to the world’s largest population.
Strengthening existing policies, redesigning policy strategies, changing policy approaches, and influencing the private sector by subsidising costs are a few measures which the Government ought to undertake in the next five years to sustain economic growth along with job creation.
The outcomes of the 2024 General Elections have shown peculiar and unexpected trends. The Indian voter has spoken his mind, and how! It is certain that these trends may prove to be beneficial for both the Indian democracy and the Indian economy. With a strong opposition and with the presence of allied parties, Modi’s Government is expected to remain on its toes, and change its course of action in order to spur economic growth in the country in a way that is ecologically sustainable.
How does the Government expect a democracy of our size to function? India is a huge country. It is a diverse country. But most significantly, it is the most populous country. Job creation is possible, but job creation for all is nearly impossible.
Here are ten proposed steps which I feel the Government could take to expand job creation and spur economic growth.
Firstly, the Government ought to encourage entrepreneurship. Encouraging entrepreneurship is an effective method to generate employment in the country. The Government should provide entrepreneurship opportunities, mentorship for the same, and funding to small businesses. Schemes and programmes that encourage small business holders to expand their businesses should be implemented. This will not only increase employment opportunities but will also enhance economic growth in the country.
Secondly, the Government should focus on those sectors of the labour market that show regular trends in job growth. Over the last five years, there has been a positive trend in job creation in the manufacturing, services, and construction sectors. More and more people in India are moving out of the agricultural sector, and are finding jobs in the manufacturing, services, and construction sectors.
According to 2021-22 data, 37 lakh jobs were generated in the manufacturing and services sectors, and 19 lakh jobs were generated in the construction sector. The agricultural sector witnessed a massive decline in youth employment engagement in the last five fiscal years.
Thirdly, the Government should focus on skill development. Promoting skill development in various sectors of the economy will definitely generate more employment opportunities. Skill development can be promoted by vocational training programmes. Vocational training should be introduced in schools so that children, from a tender age, are exposed to skill development. Skilled people are more likely to find employment opportunities, and are more likely to contribute to the growth of the economy more effectively.
Fourthly, export promotion and import substitution are important measures that boost a country’s economy. Trade promotion is a policy that encourages India to trade with other economies. Export promotion is an economic policy that aims at improving the nation’s trade performance by encouraging export of both goods and services to other nations.
Import substitution is another economic policy that encourages the home country to produce domestic goods instead of importing goods from other countries. The primary aim of trade promotion is to encourage exports, reduce imports, and boost domestic production of goods. The Government should frame and implement such economic policies, private initiatives, and development interventions that encourage exports.
Fifthly, improving infrastructure can help create jobs, increase investment, and boost the construction and other related industries. Improving infrastructure such as roads, railways, airports, and seaports will lead to the creation of jobs in the construction industry and other related industries.
Imagine that the Government creates a new airport. Besides the fact that the airport will make traveling easier and more convenient for the people, imagine the number of jobs that it will create. Furthermore, improving access to electricity, water, telephone lines, and sanitation can create job opportunities in various infrastructure-related fields.
Sixthly, investing in rural development is crucial. India has always been a primarily agriculture-based country with a large part of the population still living in rural areas, and engaging in agriculture, animal husbandry, agro-processing, or other related agro-based industries. Investing in rural development can help boost these industries and can help create jobs for people in these industries.
Investment in rural development, at large, relies heavily on the welfare of farmers. Farmer welfare schemes should be implemented. Farmers should be provided training in various related fields. Improved infrastructure in rural areas, improved development of agro-based industries, improved access to technology in rural areas, and improved scientific methods of farming are a few ways in which rural development can be endorsed in the country.
Seventhly, encouraging foreign investment is a step that can not only lead to the creation of jobs in various sectors of the economy but can also boost the position of the Indian economy in the global market. Foreign investment in India can be encouraged by promoting India as an ideal destination for foreign investors who wish to invest in various sectors or markets of the economy.
For instance, the Government should make it a mission to promote tourism and hospitality in the country. Besides these, tax incentives, regulatory reforms, policy changes, and infrastructural improvements can help encourage foreign investment in the country.
Eighthly, fostering innovation can lead to the creation of new industries that will, in turn, create jobs and encourage startups. How can the Government foster innovation in the country? The Government should provide funds for research and development. The Government should provide funds that encourage young investors to build startups and small businesses.
The Government should focus on improving infrastructure and promoting technological advancement. Emerging industries are the ones that need the Government’s support. Thus, the Government should provide incentive to small business holders to expand their businesses. The Government should also encourage the growth of developing industries such as biotechnology, information technology, artificial intelligence, renewable energy, and waste management.
Ninthly, improving AI infrastructure in India is necessary as technological advancement is galloping at a bewildering rate, and enterprises will have to maintain pace with the same in order to thrive and grow. Infosys Chairman Nandan Nilekani recently commented on how the nation’s technology is advancing at an alarming rate, and how enterprises will have to stay updated in order to survive. The use of Artificial Intelligence is on the rise, and the Government should take steps to implement the use of AI in such a way that leads to the creation of employment opportunities.
Tenthly, simplifying regulatory and tax policies is an effective measure to further support job creation and encourage business holders. Unemployment is a major issue in India, and opposition parties such as the Indian National Congress have constantly criticised Prime Minister Narendra Modi for not taking adequate steps to curb the rising unemployment rates in the country. The 18% tax imposed on recruitment agencies should be lowered to encourage the hiring of more salaried employees.
Unemployment is an issue that seeks our immediate attention. It is an issue that needs to be addressed at the earliest. The Indian job creation crisis has been bothering the growth of the Indian economy for more than twenty-five years now. The real rate of economic growth in the country is difficult to ascertain when the number of job opportunities is dwindling.
Surging unemployment, rising inflation, and the widening gap between the haves and the have-nots, have caused extreme distress in the country. Since the newly-elected Indian Government promises to ensure diversity in governance, the youth of the country are looking forward to their hopes and aspirations being fulfilled by the Government.