Mains Daily Question
Sept. 8, 2023
Q3. Examine the regional disparities in unemployment rates within India. Also, suggest some policy measures that need to be taken and highlight the steps taken by the Government of India in that direction. (10 Marks)
Approach:
Introduction: Give an overview of regional disparities in unemployment rates in India.
Body: Discuss the factors that led to regional disparities in unemployment rates within India. Give policy measures to address regional disparities.
Conclusion: Suggest ways to improve the implementation of policy measures aimed at reducing regional disparities.
Answer:
The unemployment rate in India in 2022-23 was 7.8%, but there are significant regional disparities across regions. The states with the highest unemployment rates are Haryana (11.9%), Rajasthan (10.4%), Bihar (10.3%), and Jharkhand (9.9%).
Factors responsible for regional disparities in unemployment rates within India:
- State-level variations in economic development, job opportunities and composition of workforce. For instance, states like Kerala and Goa have historically exhibited lower unemployment rates, often below the national average, owing to factors like high literacy rates, strong service sectors, and remittances from the Gulf countries. In contrast, states like Bihar and Jharkhand have consistently reported higher unemployment rates, partially due to agrarian economies and lower industrialization.
- Urban vs. Rural Disparities: Urban regions generally have lower unemployment rates compared to rural areas due to a higher concentration of industries, services, and non-farm employment opportunities. This is because urban areas are more attractive to businesses and investors, and they offer a wider range of job opportunities. Hence state having large rural areas like Rajasthan has a higher unemployment rate.
- Industrial clusters: Certain regions, particularly those with well-developed industrial clusters, experience lower unemployment. For instance, Gujarat's Ahmedabad and Tamil Nadu's Coimbatore, known for their textile and manufacturing sectors, tend to have lower unemployment rates compared to other regions within their respective states. This is because these regions have a higher concentration of industries, which creates more jobs.
- Educational disparities: Regions with better access to education and vocational training facilities generally have lower unemployment rates. This is because education and training can help people develop the skills they need to get a job. For example, the southern states of Karnataka and Andhra Pradesh, with a strong focus on education, have a more skilled and employable workforce compared to states with lower literacy rates.
- Agricultural dominance: States with a heavy reliance on agriculture often face underemployment and seasonal unemployment issues. This is because agriculture is a seasonal activity, and there is less demand for labour during certain times of the year. For instance, Uttar Pradesh and Bihar, where agriculture is a significant source of livelihood, often report higher unemployment rates during non-harvest seasons.
- Government policies: Regional variations can also be linked to the effectiveness of state-level policies and initiatives aimed at job creation. States like Telangana and Karnataka have been proactive in attracting investments and promoting industrial growth, leading to better employment opportunities. For example, the Telangana government has implemented a number of policies to attract investments, such as the TS-iPASS scheme, which provides incentives to businesses that set up shops in the state.
Policy measures that need to be taken and steps taken:
- Invest in education and skills development: The National Skill Development Corporation (NSDC) has been set up to provide training to millions of youth across the country. The government has also launched several programmes to improve the quality of education in rural areas.
- Improve the infrastructure and connectivity: The Pradhan Mantri Gram Sadak Yojana (PMGSY) has been launched to build roads in rural areas. The government has also invested in power plants and other infrastructure projects.
- Promote entrepreneurship: The Startup India initiative has been launched to provide financial assistance and other support to entrepreneurs. The government has also set up the National Entrepreneurship Development Institute (NEDI) to train entrepreneurs.
- Implement pro-employment policies: The government has provided tax breaks to businesses that create jobs. The government has also invested in job creation schemes such as Deendayal Antyoday Yojana – National Rural Livelihood Mission (DAY-NRLM), National Career Service (NCS) etc.
- Reduce poverty: Poverty is a major cause of unemployment. The government can help reduce poverty by providing financial assistance to the poor, creating jobs, and improving education and healthcare. For example – Swarna Jayanti Swarozgar Yojana, Sampoorn Gramin Rozgar Yojana etc.
The government should coordinate the implementation of different policies to ensure that they are working together to achieve the desired outcome. For example, the government can coordinate the efforts of the Ministry of Education, the Ministry of Skill Development, and the Ministry of Industry to ensure that people in the lagging regions have access to quality education and skills training. The government needs to take a holistic approach to this issue and implement a combination of these measures to achieve success.