Challenge for Modi government: India’s job conundrum
Sooner than later, the newly elected NDA government will have to face its biggest challenge: the need to create jobs even as it ushers in a fourth generation industrial revolution where workplaces will increasingly rely on artificial intelligence, robotics, internet of things, 3D printing and a host of time-saving hi-tech tools. India has to strike a balance between the two.
This is more crucial for India than it is for the West simply because the number of people seeking jobs here is mind-boggling.
Every year some 10 million young people are being added to the potential labour force of the country. The need to harness this demographic dividend even as the country tries to catch up with the first world by adopting new technologies, which require a highly trained labour force, is crucial.
It can even be considered the challenge of the century. The new industrial policy, set to be launched by the incoming government has to address this contradiction. Studies show that unemployment rates have been rising at an alarming rate.
Obviously, the drastic rise in the number of people who don’t have jobs is a cause for concern. The government needs to bring in policies to encourage labour-intensive sectors like construction, MSMEs as well as the service sector which includes retail, hospitality, education and Medicare.
While the construction industry and MSMEs can absorb workers with minimal training, the service sector would require highly skilled workers. For this, the government must be willing to make huge investments in schemes that would make India’s youth employable.
The fourth industrial revolution, which will transform productivity, could make redundant many jobs that are now in vogue. The impact is already being felt in the Information Technology sector.
Without re-skilling, those who are losing their jobs in Cyberabad and Bengaluru will simply join the ranks of the disaffected and disgruntled.