Challenges for Indian Economy Employment Generation for Agric | StudY LoveR VeeR (SLV) Official✅

Challenges for Indian Economy

Employment Generation for Agriculture Dependent Labour Force
In China, the labour force employed in agriculture fell by roughly 1.5 percentage points per year between 2003 and 2019 (prior to the pandemic).
In India, it declined by around 1 percentage point.
Considering India’s labour force in agriculture continues to fall at its pre-pandemic pace over the coming decade the challenge before Indian economy is where they will be employed.
Semi-Skilled Employment in Manufacturing Sector
In the past, the bulk of jobs in India have been created, not in manufacturing, but in construction and services like trade and transport.
However, as formal manufacturing is much more productive than these sectors — it is twice as productive as transport, 2.5 times more productive than trade, and 3.75 times more productive than construction
The lack of employment generation in this sector has been and still remains India’s biggest growth challenge.
Export of Goods
Though exports, especially of services, have picked up over the past few years whether this momentum be sustained is a question.
Goods exports also need to pick the pace of services exports. This will have implications for job creation and the broader economy.

What Indian Economy Needs to Compete with China?

Increase Participation of Female Labour Force
A higher labour force participation rate and an expansion of the market will necessarily require female participation to increase in India.
A bigger labour force has implications for spending capacity. For example, passenger car sales in India stood at 3.8 million in 2022-23. In comparison, in 2007, 6.3 million cars were sold in China.
Mass Production
To make India an economic power, we need to do mass production. It will help achieve cost leadership and beat China’s pricing.
Around 80% of air conditioners, 70% of mobile sets, 60% of shoes, 74% of solar cells and 60% of premium luxury branded products in the world are now being manufactured in China.
We need to build clusters for that—and a one district one product strategy where MSMEs can share technology, expertise, and labour, and bring efficiency for mass production.
Skilling of Workforce
To have an edge on China or compete with China, India needs to impart skill development on a very large scale.
People transitioning from agriculture to industries need better skills. It will help for them to find better opportunities.
Diplomatic Strength
This is one area where it is not understood why India should have an asymmetry in power.
India needs to develop business skills in its diplomats.
We need to skill and re-skill them to focus and achieve both strategic and business goals from the relations with the countries they are stationed in.

Conclusion

Despite China’s runaway economic growth, there are possibilities for India to achieve extremely rapid growth over the next 20 years or soto compete directly with China.
India needs to fix some basic problems; labour force participation, tariffs, skilling workforce, etc.

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