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Growth & the Tier-2 City

  • Published
    25th Aug, 2023

Context

Despite being the fastest-growing large economy, India faces the issue of high employment. The situation highlights the need of good infrastructure, both physical and human, to create more jobs.

Lop-sided Development and Unemployment

  • India's Growth-Unemployment Paradox: India's rapid economic growth alongside high youth unemployment is attributed to skewed development policies.
  • Demographic Advantage: With a significant young population, India's demographic structure offers potential, but lack of jobs constrains its benefits.
  • Importance of Balanced Growth: The necessity of creating employment opportunities aligned with economic growth is emphasized.

Human Infrastructure Deficit and Education

  • Infrastructure Imbalance: While physical infrastructure has progressed, the deficit in human infrastructure, particularly education and skills, hampers job growth.
  • Education's Impact on Job Creation: Investing in education is key, as the returns on education investment are high, and educated individuals contribute to job creation.
  • Challenges and Quality Concerns: Poor quality, faculty shortages, outdated curricula, and the need for creative thinking hinder effective education delivery.

Governance, Tertiary Education, and De-urbanization

  • Governance Enhancement: The complexity of the education system necessitates improved governance, monitoring, accountability, and performance assessment.
  • Role of Tertiary Education: Scaling up tertiary education can create a professional workforce capable of driving new enterprises and job creation.
  • Urbanization and Job Creation: India's urbanization and industrialization paths have diverged, leading to pre-mature de-industrialization, underscoring the importance of balanced spatial development.
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