Create more competitive jobs to drive the Indian economy ahead
₹1.97 trillion, Industrial Corridor Development Programme and National Logistics Policy, among others, have been successful in achieving their respective goals. The fact that rapid growth in services preceded quick expansion of India’s manufacturing sector, unlike what tends to be the case in most other countries, is an oft-repeated observation. Given this scenario, India’s vigorous manufacturing push is timely and well needed.
The traditional view has held the manufacturing sector as holding immense job creation potential to absorb surplus labour that is otherwise employed in agriculture. Its potential has also stemmed from its ability to absorb low-skilled labour for labour-intensive work. Hence India has placed emphasis on manufacturing industries to create a growing pool of jobs.
The country has undertaken significant work on this. We must complement these efforts, however, with a focus on the creation of competitive jobs. Competitive jobs are best defined as those that provide pathways to higher productivity and enable individuals to earn their own livelihoods and become self-reliant.
Competitive jobs don’t just assure employees wages in the marketplace, they also provide opportunities for people to develop capabilities that can enhance productivity over time. These jobs are extremely important because a focus on developing the capabilities of workers and improving their productivity is key to unlocking long-term economic growth. To quote economist Paul Krugman in this context, “The capacity of a country to improve its standard of living through time depends almost entirely on its capacity to increase output per worker." By not allowing stagnation in an individual’s capacity and by offering instead an environment
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