Is it necessary to generate employment in the formal sector rather than in the informal sector? Why?
Economic growth implies growth in the GDP, i.e. growth in the aggregate output produced during an accounting period within the domestic territory of an economy. The increased output level is achieved by generating more employment opportunities and through employing better technology. During the recent past, India has witnessed jobless economic growth that raised the aggregate output level without the proportionate rise in the employment opportunities and, consequently, unemployment continued to exist. The reason is that the rise in GDP is caused by employing modern and improved technology that substituted labour for machines. This failed to generate new employment opportunities in the industrial and the tertiary sectors. Thus, the industrial and the tertiary sectors failed to absorb the excess labour from the agricultural sector. As a result, disguised unemployment in the agricultural sector continued along with low levels of productivity and massive poverty. In addition to this, MNCs that played an important role in India's economic growth provided employment only to the educated and specialised workforce. These MNCs aimed at achieving higher output levels by employing better technology rather than generating greater employment opportunities. Thus, employment generated in the country does not commensurate with the growth of GDP in India.
Popular Questions of Class 11 Economics - Indian Economic Development
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What are the functions of the environment?
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Why was the public sector given a leading role in industrial development during the planning period?
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Highlight any two serious adverse environmental consequences of development in India. India’s environmental problems pose a dichotomy — they are poverty induced and, at the same time, due to affluence in living standards — is this true?
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Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in Mother Dairy (iv) a tuition master (v) transport operator (vi) construction worker.
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Critically appraise some of the shortfalls of the industrial policy pursued by the British colonial administration.
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Explain the steps taken by the government in developing rural markets.
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Agriculture sector appears to be adversely affected by the reform process. Why?
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Discuss the need for promoting women’s education in India.
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Name some notable economists who estimated India’s per capita income during the colonial period?
Recently Viewed Questions of Class 11 Economics - Indian Economic Development
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What are the functions of the environment?
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Which is regarded as the defining year to mark the demographic transition from its first to the second decisive stage?
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Give two instances of
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How are the rates of consumption of energy and economic growth connected?
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