Why has India’s economic growth rate slowed down in the last decade?
India’s economic growth rate has slowed down due to three consecutive economic policy shocks which impacted job growth: the demonetisation of 86 per cent of India’s currency value in November 2016; the badly designed and poorly implemented national Goods and Services Tax in July 2017; and a very strict national lockdown after the COVID-19 pandemic struck in March 2020.
What is needed for India to generate more jobs?
To generate more jobs, the economic growth rate will need to rise to 8 per cent per annum (at a minimum for the current decade) to absorb the projected increase in the working-age population. This means addressing problems in its four main drivers—consumption, investment, exports and government expenditure.
What strategies are needed to create jobs in India?
To create jobs, strategies are needed beyond just reviving growth. These include government investment in agriculture to enhance productivity and rural incomes, a coherent industrial policy focusing on labour-intensive manufacturing sectors, better policy support for micro, small and medium enterprises (MSMEs), and investment in education, infrastructure, and research and development.
What is the Cluster Development Program in India?
The Cluster Development Program in India focuses on geographically concentrated clusters that have grown organically over decades. There are 5500 clusters in India producing manufactures. This sector needs upgraded support, including access to credit, skills development, technology upgrades and market development at the level of each cluster.
What is the significance of industrial corridors in India?
Industrial corridors with industrial hubs are important for linking the hinterland to the coast and enabling global value chain production and services links, attracting investment and creating jobs. The two most advanced are the western Delhi–Mumbai Industrial and Freight Corridor and the eastern Amritsar to Kolkata Corridor. But progress on the Mumbai–Bengaluru, Bengaluru–Chennai and Chennai–Kolkatta corridors, forming the southern peninsular legs, has been slow.
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