Why in the News?

With the Union Budget now presented, this is the right time to focus on three important types of jobs India needs: climate-friendly jobs, jobs that can adapt to AI, and jobs that match people’s aspirations.

Why must long-term structural reforms in India focus on creating climate-resilient, AI-resilient, and aspiration-centric jobs?

• Economic Stability & Climate Adaptation: Climate change threatens agriculture, infrastructure, and livelihoods. Structural reforms must promote green jobs in renewable energy (e.g., solar panel manufacturing, e-rickshaw deployment) and climate adaptation (e.g., afforestation, water conservation projects) to ensure sustainable economic growth.
• Future-Proofing Against Automation: With AI disrupting traditional jobs, reforms should focus on AI-resilient employment by upskilling workers for roles in healthcare, education, and creative industries (e.g., AI-assisted medical diagnostics, digital marketing). This will help maintain workforce relevance and prevent large-scale job losses.
• Inclusive & Aspirational Workforce: Youth and marginalized groups need jobs that match their ambitions. So, reforms should enhance opportunities in high-growth sectors like tourism, food processing, and local manufacturing (e.g., PM Vishwakarma Yojana for artisans, National Manufacturing Mission in textiles and electronics) to drive social mobility and economic dynamism.

What types of jobs are necessary for achieving Viksit Bharat?

• Manufacturing Jobs: Increasing the contribution of manufacturing to GDP from approximately 16% to 25% by 2030 is crucial. This requires creating jobs in various manufacturing industries, enhancing productivity, and reducing operational costs.
  • MSMEs are vital for employment generation. Policies aimed at supporting these enterprises can create millions of jobs by fostering entrepreneurship and innovation within local communities.
• Boosting Rural Demand and Agricultural Reforms: Jobs that focus on modernizing agriculture through technology and sustainable practices can enhance productivity and create employment in rural areas. This includes initiatives that support local farmers and agricultural workers.
• Skill Development Initiatives: With a strong emphasis on skilling the workforce, there is a need for jobs that require specialized training in sectors like technology, healthcare, and renewable energy.
• Climate-Resilient Employment: As India faces significant challenges due to climate change, creating jobs focused on sustainability—such as in renewable energy sectors (solar, wind) and environmental conservation—will be critical for long-term resilience.
• AI and Digital Economy Roles: With the rise of artificial intelligence and digital transformation, there is a growing demand for jobs that leverage technology. This includes roles in IT services, software development, data analysis, and digital marketing.
• Service Sector Jobs: The service sector continues to be a significant contributor to employment in India. Focused efforts on improving service delivery in healthcare, education, and hospitality can create numerous job opportunities.

How can structural reforms in the economy facilitate job creation?

• Enhancing Government Investment: Increased funding in infrastructure, education, and healthcare sectors directly correlates with job creation.
  • For instance, investments in rural infrastructure can stimulate local economies and create jobs in construction and services.
• Promoting Industry Participation: Collaborating with industries for training programs ensures that the skills developed align with market needs, thereby improving employability. This approach can help bridge the gap between educational outcomes and industry requirements.
• Supporting MSMEs: Strengthening micro, small, and medium enterprises (MSMEs) through financial incentives and easier access to credit can drive job creation. MSMEs are crucial for employment as they account for a significant portion of India’s workforce.

What role does government policy play in bridging the gap between formal and informal economies? (Way Forward)

• Implementing Employment Schemes: Programs such as the Employment Linked Incentives (ELI) aim to create jobs through targeted financial support for employers who hire new employees.
  • This encourages formal employment while providing a safety net for workers transitioning from informal sectors.
• Facilitating Skill Development: Policies focused on skill development ensure that workers are equipped with relevant skills for emerging sectors like technology and renewable energy.
  • This not only helps integrate informal workers into the formal economy but also enhances overall productivity.
• Encouraging Entrepreneurship: By fostering an environment conducive to startups and small businesses through grants, tax incentives, and simplified regulations, the government can stimulate job creation across various sectors, particularly in rural areas where traditional job opportunities may be limited.

Mains PYQ:

Q The nature of economic growth in India in recent times is often described as a jobless growth. Do you agree with this view? Give arguments in favour of your answer. (UPSC IAS/2015)

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