The economic growth rate of India has encountered a significant slowdown over the past decade. This decline can be attributed to three major economic policy shocks that have adversely affected job creation. These shocks include the demonetisation of 86 percent of India’s currency value in November 2016, the poorly designed and implemented national Goods and Services Tax introduced in July 2017, and the stringent national lockdown imposed after the COVID-19 pandemic began in March 2020.
For India to effectively generate more employment opportunities, the economic growth rate must increase to at least 8 percent per annum throughout the current decade. This growth is essential to accommodate the anticipated rise in the working-age population. To achieve this, it is crucial to address issues within four primary sectors: consumption, investment, exports, and government expenditure.
To create sustainable jobs, it is vital to implement strategies that extend beyond merely revitalizing growth. These strategies should encompass:
The Cluster Development Program in India plays a pivotal role in fostering economic growth. This initiative focuses on geographically concentrated clusters that have organically developed over decades. Currently, there are approximately 5,500 clusters in the country engaged in manufacturing. These sectors require enhanced support, including access to credit, skill development, technology upgrades, and market development tailored to each cluster's unique needs.
Industrial corridors featuring industrial hubs are crucial for connecting inland areas to coastal regions, thereby facilitating global value chain production and service linkages. They serve not only to attract investment but also to create jobs. Among the most advanced projects are the western Delhi–Mumbai Industrial and Freight Corridor and the eastern Amritsar to Kolkata Corridor. However, progress on the Mumbai–Bengaluru, Bengaluru–Chennai, and Chennai–Kolkata corridors, which form the southern peninsular legs, has been notably slow.
In conclusion, revitalizing India's economic growth and creating jobs necessitate a multifaceted approach involving strategic investments, policy support, and the development of infrastructure that encourages connectivity and productivity.
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