The country requires an employment and income strategy to guide its industry and trade policies? Examine?

The country requires an employment and income strategy to guide its industry and trade policies? Examine? 

According Mahatma Gandhi’s talisman provides a good test. The government should think of the needs of the poorest citizens first,passing  of years, decades of decades the poor or become poor and rich are becoming rich and richer. What need be done? 

Challanges :

• India’s complex, socio-economic environmental system is under even greater stress. The country must improve on many fronts. Example :Job creation 

• India ranks very low in international comparisons of human development (education and health), even below its poorer subcontinental neighbours. Example : Human development index indicators 

• It is the most water-stressed large economy in the world; its cities are the most polluted. Example : because of climate  change more stress water, water is becoming rich. 

• India’s economic growth is not generating enough jobs for its burgeoning population of youth: the employment elasticity of India’s growth (numbers of jobs created with growth) is amongst the worst in the world. 

• Bold actions without an understanding of the whole system can cause great harm. The bold move to demonetise the currency notes in 2016 was an egregious example. 

•  Unemployment of persons with vocational education has gone up between 2011-12 and 2017-18, from 18.5% to 33%. India now has a larger number of frustrated youth.

Example :No new creation of jobs at bottom level 

Way forward :

Frame people centric polices :

1)First, they need to make their policies people-centric rather than growth-centric.

Example :Kerala model’, a ‘Gujarat model’, and now a ‘common man’s model’ implemented by the Aam Aadmi Party (AAP) in Delhi. Local, participative governance has been a distinction of Kerala’s model. Kutuabamsree. 

2)Increase in disposable incomes:

The government has computed that its programmes for improving the ‘ease of living’ of citizens by improving the quality and accessibility, and reducing costs, of a range of public services has increased savings per family by ₹4,000 per month. The increase in disposable incomes has resulted in additional consumer-buying power, estimated at ₹24,000 crore per annum.

3) Creating jobs:

India’s challenge now is to build an Indian ecosystem in which competitive enterprises will grow to create more opportunities for jobs for youth and for increasing citizens’ incomes. 

4) Encouraging new industrial Investment :

Growth of incomes in India will make India more attractive for investors. A stronger industrial system will give India more headroom in trade negotiations too. India’s industrial and entrepreneurial ecosystem’s growth must be accompanied by an improvement in environment. Policies must be managed with a whole systems view. While ‘Ease of doing Business’ gauges health from a business perspective, ‘ease of living’ should become the measure of the health of the whole system.

5)  Inclusive development with decentralisation  : Pirotising the inclusive development is result to the better enhance and in growth, job creation. 

Example : Andhrapradesh model were all section was including in major activities. 

Policy decisions invariably require compromises between competing interests.However, a citizen’s more fundamental need is for a good job and source of income to buy the imported goods.