Labour & Employment
India has been experiencing a consistently high growth rate during the post-liberalisation period following the implementation of economic reforms in the early 1990s. It has achieved excellence in several key areas ranging from information technology and pharmaceuticals to automotive parts, and is now considered as one of the fastest growing economies of the world.
Despite these positive developments, India is still among the countries with some of the lowest indicators of human development. The rise in income inequalities and regional disparities is also a matter of concern. Employment has grown, but the jobs created are not of high quality. Above all, an overwhelming majority of the population is deprived of basic social protection.
Economic growth has also failed to have an impact on employment growth, resulting in the persistence of extreme poverty and associated ills like child labour. Moreover, dualism in employment has been growing over time, as shown by the declining share of formal employment in the total jobs and the widening gap in labour and income between formal and informal workers.
Increasing productivity, especially in the organised/manufacturing and non-farm sectors is a critical element of the generation of 'good' jobs. However, productivity growth needs to be labour-intensive rather than capital-augmented as the latter would lead to displacement of labour and aggravate the problem.