25 NOV,2019 | MEDC
India’s unique demographic dividend is its greatest potential resource for ensuring rapid and sustainable economic development. Unfortunately, there is now a danger of this asset being squandered in the absence of the right policies. Some areas needing immediate attention are our public education and vocational training system, complex and anti-job creation maze of labour laws, infrastructural constraints undermining productivity and an NPA burdened financial system. There is also a distressingly slow shift of labour from low-productivity agriculture to relatively higher-productivity industry and services. India’s labour is supposed to be the world’s cheapest, but, adjusted for productivity, it is probably the world’s costliest. This does not bode well for nation-building activities, given that global firms are not willing to tolerate any more slack in India. Until policy focuses on addressing all these diverse issues, India’s employment challenge is likely to continue, with adverse consequences for socioeconomic development.
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