Question :

"Economic Growth in the recent past has been led by increase in labour productivity." Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity. (CSM 2022 GS3) (15 Marks)

Keywords —

Economic Growth
Labour Productivity
Way to Create More Jobs Without compromising labour productivity.

Direction —

Explain.

Answer Structure / Table of Content —

Introduction

What is Labour Productivity
Data about India Labour Productivity

Body

How Labour Productivity Increased in India in Recent Years
Growth Pattern that will lead to creation of More jobs Without compromising Labour Productivity

Conclusion

Suggestion For Future.

Labour Productivity Trend in India —

Labour Productivity is defined as the measure of how much output is produced per unit of labour input.
As per Ministry of Labour and Bureau India Average Labour Productivity Between 2000-2013 — 5.2% — which is 2nd highest In Asia Region After China.
High Labour Productivity means more output per employed worker –– Which led to Growth of economy.

How Labour Productivity Increased in India in Recent Years — Some Reasons are —

Technological Advancement
Increased Investment in Infrastructure — Brownfield, Greenfield Projects, More Capital.
Improved Economic Policies
Goods and Services Tax — Uniform Tax Throughout the country.
Input Way Bill System.
Make In India Initiative — Employed More Labor — rise in Labour Productivity.
Skill Development and Vocational Learning Programmes. — Which helped in Improving quality of Workforce.
Growth of Service Sector in India in last 20 Years — Specially IT Industry — Which contributed to increased in Labour Productivity.

With these eventually rise in Labour productivity reflect in growth of Indian Economy. India currently 2.5 Trillion Economy, which aiming to be $5 Trillion Economy by 2024.

Growth Pattern that will lead to creation of More jobs Without compromising Labour Productivity —

Focus on High Value Added Sectors and Skilled Labour. Examples
Technology —
Bio-technology, Robotics, IT Industry, AI, Nano Technology.
Renewable energy
Healthcare
Education.
Investing in Research and Development
Automation — Speed up the task.
Promoting Entrepreneurship
Innovations.
Encouraging more and more MSMEs to Come out of their comfortable zone, using New Technology to increase revenues. — which will create more jobs.
Investment in Human Capital Development
Skilled Workforce — Training and Development — Which provided new skilled jobs in the country.
Jobs Oriented Education.
Reducing Gap between Education and Work.
Vocational Training Programme, Recognition.
Government can create conducive environment for Business to grow by Ease of Doing Bussiness, promoting Stable Macroeconomic Frameworks.

Above Methods will help in Stable economic policy and creation of more jobs without affecting Labour productivity.