← All questionsGS3 · 2022 · Economy & Infrastructure ·Labour Productivity-Led Growth and Job Creation
QUESTION 11
GS3
15 marks

“Economic growth in the recent past has been led by increase in labour productivity.” Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity.

WRITE IN
11 min
250 words

What the examiner wants

Explain why recent growth has come from higher labour productivity rather than more jobs, and suggest a growth pattern that adds jobs without hurting productivity.

ExplainMake clear how and why it happens: causes, process, and an example for each point.

Demand-wise check

  1. 1Meaning: output per worker rose through capital deepening, technology and services; employment elasticity fell ('jobless growth')≈65 words
  2. 2Evidence: growth led by capital-intensive and skill-intensive sectors (IT, finance), slow shift of workers out of farming≈65 words
  3. 3Job-rich growth pattern: labour-intensive manufacturing (textiles, food processing, leather, toys, electronics assembly), MSMEs, construction, tourism, care economy; skilling; easing labour rules; agro-processing≈65 words

Open in about 30 words and close in about 30.

Answer plan

Explain the statementEvidenceWhy it limits jobsJob-rich growth patternKeeping productivity highConclusion

Where marks usually go

  • Explaining the statement but not suggesting a growth pattern
  • Suggesting job creation through low-productivity work, which the question rules out

Draw this

  • Sector matrix: high productivity/low jobs vs high productivity/high jobs, with target sectors

Value addition

  • ConceptEmployment elasticity of growth measures how much employment rises with 1% GDP growth; it fell in India in the 2000s and 2010s.RBI KLEMS database / ILO
  • SchemePLI schemes for labour-intensive sectors such as textiles and food processing aim to add jobs at scale.DPIIT

Mapped topper copies

Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.

Links open original public sources. MainsBuddy does not host these answer sheets.