6. Comment on the challenges for inclusive growth which include careless and useless manpower in the Indian context. Suggest measures to be taken for facing these challenges.

Inclusive growth has remained elusive despite governments best efforts. Post-1991 India has witnessed a rise not only in prosperity but also disparities.  Inequalities have got widened and accelerated. Well developed and prosperous regions have attracted most of foreign investment and have grown further rapidly. Major challengers for inclusive growth are,

• Poverty, lack of adequate employment opportunities.
• Lack of adequate education and skill development.
• Lack of infrastructure – Social and physical.
• Governance deficit, especially in backward regions.

         Poverty has been the major reason for poor performance in human development. Poor lack the capability and resources. They are more dependent on government services. Hence, they are impacted the most in case of governance failure.

    Poor education and skill set force individuals to be either underemployed or productively employed (disguised unemployment). Though, Agriculture contributes only 14.1 % to Indian GDP, a mammoth 53% are employed in this sector. Farm holdings mostly involve familial holdings where redundant labour is used. The marginal productivity of these workers is zero. If they were to be removed, it won’t have an effect on productivity or output. Thus, they are physically employed but economically unemployed. This hampers productivity and growth. Since excessive labour is deployed, the fruits of labour (wage) are sub- divided among them, with each receiving less.

    Underemployment has been another core concern. Lack of high productivity and high wage jobs has forced underemployment. Niti Ayog in its 3 years Action Plan Agenda has proposed Coastal Economic Zones for labour intensive manufacturing. It has suggested that Indian should aim to manufacture for global markets. Skilled labour would provide India a competitive edge for exports oriented Make in India. It has further proposed to allow fixed term employment for meeting seasonal demand.

    Appropriate employment has a huge equalizing effect and aids in growth and development. Careless and useless deployment of manpower has inhibited the individuals as well as the Indian economy from realizing its true growth potential. Government should take further pro-active steps and facilitate all round inclusive growth by providing adequate opportunities. Initiatives such as Sarva Siksha Abigyan, Pradhan Mantri Kaushal Vikas Yojana, Stand up India, Start up India should be implemented in letter and spirit.