INDIA'S GROWTH STALEMATE: BREAKING FREE FROM THE MIDDLEINCOME TRAP

INDIA’S ECONOMIC GROWTH has been substantial but has fallen short of generating sustained high growth rates necessary to absorb its expanding workforce.

- Vikas Singh

This persistent growth gap is the root of the country’s employment crisis. The hope that the manufacturing sector would be a major job creator is diminishing as automation increasingly replaces human labour.

India’s Job Crisis: The prevailing narrative often emphasises job creation, yet the core issue extends beyond mere numbers. The focus must shift from merely generating employment to creating ‘good’ jobs that provide decent wages, job security, and opportunities for advancement. This necessitates a fundamental change in approach, prioritising rapid and inclusive economic growth.

Economic growth isn’t just a numerical target; it’s the lifeblood of a nation’s prosperity. Achieving sustained high growth rates is paramount to addressing the multifaceted challenges of job creation, poverty reduction, and social development.

A robust economy, expanding at a healthy pace, generates a multiplier effect. It stimulates demand across sectors, leading to increased production, investments, and consequently, the creation of new jobs. Jobs catalyse consumption, triggering the virtuous growth cycle. This upward spiral is crucial for improving the quality of life for millions of Indians.

Conversely, a sluggish economy stifles job creation, leading to suppressed wages, reduced consumption, and a further economic downturn. This vicious cycle exacerbates income inequality.