India, renowned as the fastest-growing major economy globally, has garnered attention for its impressive economic strides. However, beneath this growth lies a concerning reality: nearly a quarter of its youth population remains unemployed. This paradoxical combination of high growth and high unemployment stems from lop-sided development policies and inadequate investments in human infrastructure. In a country where more than 50% of the population is below the age of 25, the coexistence of these challenges is both puzzling and concerning.
High Growth and Youth Unemployment
The prevailing paradox of India’s high growth and concurrent youth unemployment can be attributed to the skewed nature of development policies. These policies have not effectively translated economic expansion into adequate job opportunities, especially for the millions of young individuals joining the workforce each year. Despite global changes and the potential they offer, the lack of focus on human infrastructure, particularly education and skills, has hindered job creation.
The Human Infrastructure Gap
While India has made significant strides in improving physical infrastructure, the same cannot be said for its human infrastructure. The country’s emphasis on urban-centric physical development, while the manufacturing sector increasingly shifts to rural areas for cost competitiveness, has resulted in underdeveloped rural human infrastructure, constraining growth and employment potential.
Investing in Human Infrastructure
Investments in education have proven to yield higher returns compared to investments in physical infrastructure. Primary education offers nearly 20% average social rate of returns, with higher education showing a rising trend. Acknowledging this, policymakers must realize that enhancing education can significantly accelerate job creation. New enterprises, which are the primary creators of jobs, seek skilled workers and solid physical infrastructure, presenting a substantial opportunity for India’s youthful populace.
Challenges of India’s Human Infrastructure
The challenges pertaining to human infrastructure in India are multifaceted:
- Illiteracy Struggles: India houses the world’s largest population of illiterate adults, with over a third of its adult populace lacking basic literacy skills.
- Rural Complexities: Rural areas grapple with a range of challenges, spanning access, quality, relevance, finance, and governance.
- Quality Concerns: Despite notable universities, concerns linger over the varying quality of graduates from both public and private institutions. Lack of quality assurance further exacerbates the issue.
- Faculty Shortage and Outdated Curricula: A dearth of qualified faculty due to inadequate compensation, outdated curricula, and rote learning-centric approaches hinder the development of critical skills demanded by the job market.
Mitigating the Challenges
Overcoming these hurdles necessitates a holistic approach:
- Enhanced Governance: As the education landscape diversifies, the governance of the system must evolve with it. Improved incentives, monitoring, performance assessment, and accountability are vital for both the education system and its students.
- Empowering Tertiary Education: Boosting tertiary education will expand the pool of professionals capable of spurring new enterprises and fostering job creation. This education tier fosters knowledge dissemination beyond academia.
- Focusing on Tier-II Cities: To harness economic growth, focus should shift to tier-II cities. These cities have the potential to drive 70% of new jobs and GDP over two decades, mirroring global trends of growth dispersion.
Reimagining India’s Future
The dynamic between urbanization and industrialization has shifted, leading to rural-centric industrial growth. This shift demands a reevaluation of development strategies. India’s rural transformation should encompass not just agriculture but also the manufacturing sector, facilitating job creation and balanced growth.
UPSC Mains Questions
- How does India’s experience of high economic growth juxtaposed with high youth unemployment challenge conventional notions of development?
- In what ways does the disparity between the quality of education in public and private institutions impact India’s ability to address its unemployment crisis?
- How can the paradigm shift towards rural manufacturing be leveraged to not only generate employment but also stimulate broader economic growth?
- What role does the reformation of governance and accountability play in building a robust human infrastructure capable of meeting the demands of a changing job market?