Sunday, December 28, 2014

MODEL ANSWER: CIVIL SERVICE MAIN EXAM,G.S. -3(ECONOMIC DEVELOPMENT) BY VASHISTHA RAY


Q.2.While we flaunt India’s demographic dividend, we ignore the dropping rates of employability. What are missing while doing so? Where will the jobs that India desperately needs come Q.2. While we flaunt India’s demographic dividend, we ignore the dropping rates of from? (UPSC, CIVIL SERVICES MAIN EXAM, 2014, G.S -3 BY VASHISTHA RAY)


Ans: India found a much needed solace with the size of its population when the term ‘demographic dividend’ started gaining currency. Demographic dividend refers to benefits of having large population or labour force. india can certainly be the beneficiary of its demographic size as almost 63% of its population falls in the age group of 15-64 which are considered to be working population and developed and large economies of the world is going to face adequate labour shortage in days to come because of their negative population growth. However, the euphoric discussion of demographic dividend ignores dropping rates of employability in India. This is due to the following factors:
A.     Skill-deficiency
India’s employability is seriously handicapped by skill deficiency. Availability of jobs at domestic and international level requires educated and skilled labour-force. But unfortunately,  India has been a house of churning-out uneducated and unskilled labour-force. This is due to our inappropriate education system and inadequate on-job-training program. We have also failed to preserve and develop our traditional skills in handicrafts, artisans, astronomy and preparation of medicinal compound which could have been the source of employment.

B.      Complex Tax Structure
        The complex tax structure in our country has given birth to frequent disputes between government and investors or companies. This has worked as a disincentive to industrial growth and FDI. The protracted tax dispute between central government and Vodafone sent wrong signal to foreign investors and tarnished the image of India as investors’ friendly country. It was due to only  tax dispute with government that the largest plant of Nokia at Chennai employing thousands of Indian workers had to be shut-down.

C.      Structural Bottlenecks
        Structural bottlenecks in terms of red-tapism , delay in critical policy decisions , poor conditions or non-availability of infrastructure and complex labour laws have significantly discouraged entrepreneurs to initiate business enterprises. This has also reduced our employability.

D.     Low Level Of Competitivenes
  We are also losing outsourced jobs from advanced countries to china and other countries. This is primarily due to lack of suitable policy measures and low level of competitiveness in acquiring such jobs.


India can generate lots of jobs by developing its manufacturing sector which has ample potential to absorb unskilled, semi-skilled and skilled labour simultaneously. It can also get the required jobs from small-scale industries which are labour-oriented. Development of export based industries may have key to generation of job opportunities in India. We can also get jobs from FDI and outsourcing by developed countries.  Vashistha Ray

2 comments:

  1. In the give time and word limit its not possible to write an answer of 400 words.... should have made it more precise.

    ReplyDelete
  2. In the give time and word limit its not possible to write an answer of 400 words.... should have made it more precise.

    ReplyDelete