Do you think that in the last 50 years, employment generated in the country is commensurate with the growth of GDP in India? How? | Learn NCERT solution | Education portal Class 11 Indian Economic Development | Study online Unit-7 Employment: Growth, Informalisation and Other Issues



Q.17:- Do you think that in the last 50 years, employment generated in the country is commensurate with the growth of GDP in India? How?

 

Answer

In the last 50 years, employment generation in India is not commensurate with the growth of GDP.



The GDP growth was about 3.6% during 1950s and it grew at a healthy rate of more than 8% in 2010. Employment generation was 0.39% in the 1950s and it maintained some semblance of growth between 1960s and 1990s. But by the second half of the 2010s, employment generation fallen drastically. Therefore, we can conclude that employment generated in the country is commensurate with the growth of GDP in India.
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.