India to focus on skilled jobs, employment quality to achieve inclusive growth: EAC-PM chief S Mahendra Dev

India's economic trajectory has long been a subject of intense debate, particularly concerning the quality and quantity of employment generated. The recent statement by S Mahendra Dev, chief of the Economic Advisory Council to the Prime Minister (EAC-PM), signals a strategic and necessary shift in focus towards generating skilled employment and improving job quality. This move is not merely a tactical adjustment but a fundamental reorientation aimed at achieving inclusive and sustainable growth, with a targeted 7.7% growth rate from 2022-23 to 2025-26.

Historically, India has grappled with the paradox of 'jobless growth,' where significant economic expansion often failed to translate into adequate, quality employment opportunities for its vast and young workforce. A large proportion of the Indian workforce remains in the informal sector, characterized by low wages, lack of social security, and poor working conditions. This challenge is exacerbated by a demographic dividend that, if not properly leveraged through skill development and job creation, could turn into a demographic burden. Past efforts, such as the 'Skill India Mission' launched in 2015, aimed to address the skill gap, while 'Make in India' (also 2014) sought to boost manufacturing. However, the current emphasis from the EAC-PM underlines a renewed and more integrated approach, recognizing that mere job creation is insufficient; the focus must be on 'skilled' and 'quality' jobs.

At the heart of this strategy is the manufacturing sector, identified as a key driver for creating labor-intensive job opportunities. Unlike the services sector, which often requires higher educational qualifications and can be less inclusive, manufacturing has the potential to absorb a larger segment of the semi-skilled and skilled workforce, fostering a more equitable distribution of wealth. The envisioned growth is also dependent on increased investments (both domestic and foreign), robust domestic savings, and a thriving export sector, creating a virtuous cycle where production leads to employment, which in turn boosts consumption and savings.

Key stakeholders in this ambitious endeavor include the Government of India, particularly institutions like the EAC-PM, NITI Aayog, and various ministries (e.g., Ministry of Skill Development and Entrepreneurship, Ministry of Labour and Employment, Ministry of Commerce and Industry). Their role is pivotal in policy formulation, scheme implementation, and creating an enabling environment. The private sector, comprising both large corporations and MSMEs, is a critical partner, as it is the primary engine of job creation and skill absorption. Educational and vocational training institutions are tasked with aligning their curricula with industry demands, producing a workforce equipped with relevant skills. Finally, the workforce itself, particularly the youth, are direct beneficiaries and active participants, whose aspirations and productivity will determine the success of this shift.

This strategic pivot holds immense significance for India. Economically, it promises to elevate productivity, increase per capita income, and reduce poverty by integrating more people into the formal economy. Socially, it aims to reduce income inequality, improve living standards, and enhance social mobility, thereby fostering greater social stability. Politically, delivering on promises of quality employment is crucial for maintaining public trust and ensuring governance effectiveness. Realizing the demographic dividend, which India is currently experiencing, is contingent upon providing meaningful employment to its young population, thereby preventing social unrest and harnessing the potential for economic growth.

Several constitutional provisions underpin the state's responsibility in this regard. The Directive Principles of State Policy (DPSP) are particularly relevant. Article 38 mandates the state to secure a social order for the promotion of the welfare of the people, striving to minimize inequalities. Article 39 directs the state to secure the right to an adequate means of livelihood for all citizens and ensure equal pay for equal work. Article 41 recognizes the right to work, to education, and to public assistance in certain cases, while Article 43 mandates a living wage and conditions of work ensuring a decent standard of life. These articles provide the constitutional framework for policies promoting skilled employment and job quality. Furthermore, recent policy initiatives like the National Education Policy (NEP) 2020 emphasize vocational education and skill integration from school to higher education, while Production Linked Incentive (PLI) schemes are designed to boost domestic manufacturing and create jobs.

Looking ahead, the future implications are profound. If successfully implemented, this strategy could propel India into a higher growth trajectory, making its economy more resilient and globally competitive. It could transform India from a provider of low-cost labor to a hub for high-quality, skilled manufacturing and services. However, challenges remain, including the rapid pace of technological change and automation, which could displace certain types of jobs, necessitating continuous upskilling and reskilling. Global economic uncertainties and geopolitical shifts also pose risks. Consistent policy implementation, adaptive educational reforms, and robust industry-academia collaboration will be crucial to navigate these complexities and ensure that India truly achieves inclusive growth through skilled and quality employment.