At a general election rally in the Uttar Pradesh city of Agra in November 2013, then-Indian Prime Ministerial candidate Narendra Modi told a packed crowd that his Bharatiya Janata Party (BJP) would create 10 million new jobs during its first term in office.
In 2015, a year after he was elected, Modi launched the Skill India Mission with the goal of providing skills training to some 400 million Indians over the following seven years. He hoped to bring in more high-level jobs through this approach that would also make India “the world’s human resource capital”.
At that time, only 2% of India’s total workforce was made up of skilled workers, which is far lower than most other developing nations.
Today, Modi’s ambition of a steady job market remains more of a pipe dream than reality.
A government survey last year showed that things were nowhere near what he had hoped for back in 2015. Instead, India continues to be stricken by a severe skills shortage, caused by a multitude of both structural and cultural factors.
The Labour Ministry also admits that employment growth has been “sluggish”. This was its response to data from the official economic survey in 2016-17, which showed India’s unemployment rate had actually risen since 2014.
Total employment – the number of available jobs – in fact, fell across all sectors, according to an independent study by economist Vinoj Abraham.
Abraham noted that the falling employment levels were linked to a slowdown in overall economic growth, with growth in India’s Gross Domestic Product declining for six consecutive quarters between January 2016 and June 2017. The growth rate hit a three-year low of 5.7% in the second quarter of last year.
Read More – Hrmasia