Leaders Speak - October 2015

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Economic growth without employment generation has brought Patels out of their glittering homes to streets demanding reservation as a compensation. A sea of Patel is rising against and threatening its own political benefactor. Today’s warriors for reservation are yesterday’s protagonists of development and the backbone of the violent anti-reservation protests of 1981 and 1985. Patels feel threatened by rise of reservation-empowered-lower-caste at their expense. The ‘Patel power’ is preparing to flex its considerable financial muscle as well as its bodily sinews. Led by a greenhorn Hardik Patel, the community could employ a strategy of mass bank withdrawals in Gujarat to further their crusade for OBC status. Even more dangerous is the potential for the Patel agitation to spread to other social groups and across the country. It will also turn ‘demographic dividend’ in stark perspective.
Census data reveal that the number of people seeking jobs grew annually at 2.23% between 2001 and 2011, but growth in actual employment was only 1.4%. An Assocham study shows as many as five million jobs were lost in India between 2004-05 and 2009-10, technically a period of high growth. This shows that growth doesn’t always create as many jobs as it is skewed towards capital- or skills-intensive sectors rather than labour intensive manufacturing. Gujarat, home to protesting Patels, confirms the picture. It is a manufacturing powerhouse that specialises in capital intensive products. Job creating growth is bound to benefit the vast majority of Indian populace. But several reforms, a necessary prerequisite, are strongly resisted by the vested interests. How can it reap a demographic dividend?

Leaders Speak Magazine Description:

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