The Challenges and Measures of Employment Generation in India: A Focus on the Modi Government

Total employment creation is one of the key pledges made by the Narendra Modi-led government upon its assumption of power in 2014. However, the measures taken to achieve this goal have been inconsistent, and the overall employment landscape in India remains challenging.

Understanding the Context

The Narendra Modi government came to power with the promise of generating substantial employment opportunities for the country's burgeoning youth population. The government believed that faster economic growth would naturally translate into increased job creation. Additionally, various initiatives were proposed, such as establishing the Mudra Bank to support small and medium enterprises (SMEs) and promoting the Start-UP India ecosystem to foster entrepreneurship, particularly in technology-driven businesses. These steps aimed to stimulate the economy and increase investment.

Evaluation of Government Efforts

While the government has taken several steps to promote economic development, the outcomes have been mixed. The establishment of the Mudra Bank has provided some relief to budding entrepreneurs by offering loans, which has indeed contributed to a certain degree of economic revival. Similarly, the promotion of the Start-UP India ecosystem has encouraged innovation and entrepreneurship. However, these initiatives have not yet yielded significant and widespread results, and the overall impact on job creation remains limited.

Furthermore, the government's attempts to attract foreign direct investment (FDI) through investment melas and policy changes have not led to substantial foreign investment or economic growth. The GDP parameters were modified to show growth, but this has given an illusion of a robust economy, which might not accurately reflect the real conditions on the ground. Hence, the government needs to re-evaluate its strategies to address the employment gap.

Proposed Solutions and Innovations

Given the current scenario, there is a need for a more comprehensive approach to generate employment. The government should focus on creating an investment-friendly environment and providing training and skills development programs for the workforce. Recently, there have been attempts to revive investment, and more funding is available to support start-ups. The Department of Skills also has tie-ups with Japan to upskill more people, indicating a growing recognition of the need for a skilled workforce.

Another critical step is the establishment of an investment fund that is partially controlled and partially subscribed by the public. This fund could act as a holding company or sovereign fund, investing in Indian companies while ensuring strategic control over sectors that are vital for the country's sovereignty. By taking this approach, the government can stimulate the economy and ensure that financial investments are well-managed and aligned with national interests.

It is crucial to recognize that neither public spending on infrastructure alone nor relying on the private sector to take the lead can provide a sustainable solution. While foreign investment is beneficial, it should complement rather than replace domestic investment. Knowledge transfer and technological advancements are likely to be the most significant game-changers in driving employment growth in the long term.

Conclusion

The Modi government has made notable efforts to create employment opportunities, but these efforts have not fully realized the expected results. By focusing on creating a supportive business environment, investing in skills development, and establishing strategic investment funds, the government can make a more substantial impact on employment generation. Addressing these gaps is essential for ensuring a thriving economy and a secure future for India's youth.