The idea that millions of workers in assembly lines are the best route to mass prosperity isn’t infallible. India should aim to create skilled service sector jobs by investing in its human capital
Access to education and good jobs are the primary concerns of the young voter. In the year 2022 alone, over 7 lakh students chose to study abroad, a substantial new addition coming from Tier-2 and 3 cities. The talent agency Wheebox in its India Skills Report 2023 estimates that about half of our college graduates are not employable. The Periodic Labour Force Surveys indicate around half the working-age population in urban areas are not working or looking for work.
Populism, old wine in new bottle
The political response to people’s aspirations is competitive populism. Policy instruments have seemingly been reduced to two: First, pricing interventions such as the minimum support prices for paddy and wheat and subsidies for consumables such as cooking gas, and even direct income transfers to people’s bank accounts. Second, promises of more government jobs and various ways of allocating them through reservations. Both approaches are unsustainable and will soon run up against fiscal arithmetic.
Populism, old wine in new bottle
The political response to people’s aspirations is competitive populism. Policy instruments have seemingly been reduced to two: First, pricing interventions such as the minimum support prices for paddy and wheat and subsidies for consumables such as cooking gas, and even direct income transfers to people’s bank accounts. Second, promises of more government jobs and various ways of allocating them through reservations. Both approaches are unsustainable and will soon run up against fiscal arithmetic.