UPSC Mains 2022 · GS III · Q11 · 15 marks · 250 words

“Economic growth in the recent past has been led by increase in labour productivity.” Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity.

हिन्दी में

“हाल के दिनों का आर्थिक विकास श्रम उत्पादकता में वृद्धि के कारण संभव हुआ है ।” इस कथन को समझाइए । ऐसे संवृद्धि प्रतिरूप को प्रस्तावित कीजिए जो श्रम उत्पादकता से समझौता किए बिना अधिक रोजगार उत्पत्ति में सहायक हो ।

Employment Macroeconomic Indicators

How a topper answered the closest question

Toppers wrote this one in a test series: “Differentiate between 'growth' and 'development'. What explains the phenomena of 'jobless growth' in the economy in the recent past? Suggest measures to meet the challenges therein.”

Devyanshi KauraAIR 71 · CSE 2025 · 113 wordsTheir whole copy

Opening

Growth and development are part of same paradigms - absence of one constrains the other. India's jobless growth story is a case in point - without job creation, growth cannot be sustained and vice versa.

Body · points and prose

Growth v/s Development

Growth: Refers to simple increase in aggregate economic activity across time. Measured in terms of GDP/income alone.
Development: Refers to the sum total of increase in quality of human life across time. Measured through multiple indicators like health, education, amenities, income.

Diagram

Jobless Growth since 2000s - Stagnation of manufacturing - 16% of GDP since the 1990s - Main source of labor absorption. - Services share increasing - around 55% now - but mostly in professional services like IT, finance - very low employment elasticity. - Manufacturing activity led by capital intensive sectors based on productivity increase - automotives, pharmaceuticals. - rising contractualisation in both formal and informal sector.

Essential, growth has been productivity led, not employment led.

Diagram

Measures to meet challenge of jobless growth - Development of physical infrastructure to give boost to manufacturing - Incentive schemes like PLI to revive manufacturing - Promoting use of labor using tech in production - Skilling and vocational education focus to bridge gap between unskilled and highly skilled workers. - Simplification of labor laws to encourage mass hiring

Employment intensive manufacturing is the panacea to our unemployment as well as growth problem, we must focus all efforts for the same.

Close · a way forward

Essential, growth has been productivity led, not employment led. Employment intensive manufacturing is the panacea to our unemployment as well as growth problem, we must focus all efforts for the same.

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Toppers’ answers to other close questions

Source: UPSC, Civil Services (Main) Examination 2022, General Studies Paper III, Q11. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.