← All topicsMainsBuddy · Essay PYQs ·2016 · Section B
SECTION B
Essay
125 marks

Near jobless growth in India: An anomaly or an outcome of economic reforms.

WRITE IN
90 min
1,000–1,200 words

Join daily PYQ on Telegram ↗

Reading the topic

The topic asks whether India's growth with weak job creation is an accident or a result of its reform path. The examiner expects analysis of how growth led by services and capital-intensive sectors bypassed labour-intensive manufacturing, why agriculture still holds surplus workers, and how reforms and labour laws shaped this.

ThesisIndia's weak job creation is less an anomaly than an outcome of a reform path that favoured skill- and capital-intensive sectors without building labour-intensive manufacturing.

Dimensions to cover

  1. 1Structure: services and capital-heavy industries grew fastest but employ relatively few low-skilled workers
  2. 2Manufacturing: India's manufacturing share of GDP has stayed modest, unlike East Asian economies that absorbed farm labour into factories
  3. 3Labour laws: rigid laws and contract labour shaped firms' choices, discouraging large hiring
  4. 4Informality: most workers remain in informal or self-employment, so growth adds output but not decent jobs
  5. 5Skills and youth: educated young people face high unemployment, showing a mismatch between education and jobs
  6. 6Technology: automation and global supply chains make it harder for late developers to create factory jobs

Counter-view

  • Some argue jobs have grown, especially self-employment, and recent surveys show falling unemployment. The essay should note this but question the quality of such jobs and their low earnings

Open and close

  • Open: Open with an engineering graduate from Bihar delivering food on a two-wheeler in Gurugram, past the glass towers of firms whose revenues grew far faster than their headcount
  • Close: Conclude that growth will create jobs only when policy deliberately backs labour-intensive manufacturing, skills and small firms

Where marks usually go

  • Treating the question as either-or without showing how reforms shaped outcomes
  • Citing unemployment rates without dates or sources
  • Ignoring quality of jobs and focusing only on numbers

Examples that fit

  • ThinkerDani Rodrik's work on premature deindustrialisation shows developing countries peaking in manufacturing employment at lower incomes than earlier industrialisers.Dani Rodrik, 'Premature Deindustrialization', Journal of Economic Growth, 2016
  • DataThe ILO and Institute for Human Development found that youth made up most of India's unemployed, with educated youth worst affected.ILO and IHD, India Employment Report 2024
  • CaseBangladesh built millions of garment jobs, many for women, showing what labour-intensive export manufacturing can do.World Bank, Bangladesh Development Update
  • CurrentThe Production Linked Incentive schemes, launched from 2020, aim to boost manufacturing, though critics note many favour capital-intensive sectors.Department for Promotion of Industry and Internal Trade, PLI scheme documents
  • ThinkerW. Arthur Lewis's dual-sector model explained growth through moving surplus farm labour into industry, a shift India has only partly achieved.W. Arthur Lewis, 'Economic Development with Unlimited Supplies of Labour', 1954