India must follow China's growth model to create jobs, suggests Economic Survey 2020
by BusinessToday.InEconomic Survey 2019-20: India can create 4 crore well-paid jobs by 2025 and 8 crore by 2030 by integrating "Assemble in India for the world" into Make in India
The rising level of unemployment is one of the major concerns for Indian economy. Economic Survey 2019-20 says that India should emulate China-like growth model to create unparalleled job opportunities for youth.
The Survey says, "The current environment for international trade presents India an unprecedented opportunity to chart a China-like, labour-intensive, export trajectory and thereby create unparalleled job opportunities for our burgeoning youth."
India can create 4 crore well-paid jobs by 2025 and 8 crore by 2030 by integrating "Assemble in India for the world" into Make in India, the survey said.
Economic Survey 2019-20 suggests that India should use a China-like strategy to create job opportunities by enabling assembling operations at mammoth scale in network products and increasing export primarily to markets in rich countries.
China's remarkable export performance vis-a-vis India is driven primarily by deliberate specialisation at large scale in labour-intensive activities, especially "network products", where production occurs across Global Value Chains (GVCs) operated by multi-national corporations, it added.
The survey highlighted that there has been a "significant jump of around 2.62 crore new jobs with 1.21 crore in rural areas and 1.39 crore in urban areas in this category". "Total formal employment in the economy increased from 8 per cent in 2011-12 to 9.98 per cent in 2017-18," the Survey said.
Also Read: Economic Survey 2020 forecasts India GDP growth at 6-6.5% for FY21
According to Economic Survey, the gender disparity in India's labour market has widened due to decline in female labour force participation especially in rural areas. It showed that around 60 per cent of productive age (15-59) group engaged in full time domestic duties.
The survey said that exports of network products, which is expected to equal $7 trillion worldwide in 2025, can contribute a quarter of the increase in value-added for the $5 trillion economy by 2025.
By Chitranjan Kumar