Indian Express Editorial Summary

Editorial Topic : Joblessness & Skill Gap in India

 GS-3 Mains Exam : Economy

Question : Critically analysis  the persistent problem of joblessness in India across different regimes and decades. How can joblessness, if unaddressed, become socially explosive?

Introduction:

• Lack of good jobs for India’s young population is a pressing issue.
• Joblessness is a persistent problem across regimes and decades.
• 50 years of data show job availability hasn’t kept pace with economic growth.
• If unaddressed, joblessness can be socially explosive.

Job Guarantee Schemes:

• MGNREGA (2005) provides manual labor for the poor in rural areas.
• Challenges with MGNREGA:
  • Unemployment benefits rarely received within 15 days.
  • Wage payment delays are common.
  • Work provided is less than the stipulated 100 days per household.
• Urban employment guarantee programs are being discussed (e.g., Jean Dreze’s DUET scheme).
• These schemes offer relief but are not long-term solutions.

Solutions for Employment Problems:

1. Address Employability:
   • A significant portion of unemployment is due to skill gaps.
   • Need for a large-scale vocational training program with apprenticeships.
   • Successful examples:
     • Germany – Employers contribute to vocational programs for school leavers.
     • California – Community colleges work with local firms for vocational training.
     • Kenya Youth Employment and Opportunities Project
     • Generation India program
     • Youth Building the Future Programme (Colombia)
     • Harambee Youth Employment Accelerator (Africa)
2. Targeted Industrial Subsidies:
   • Current capital subsidies distort investment towards capital-intensive methods.
   • Replace capital subsidies with wage subsidies for new job creation in large firms.
3. Support for Rural Non-Farm Enterprises :
   • Provide technical assistance and extension services to these enterprises.
   • Similar successful programs exist for community health workers.
4. Minimum Basic Income :
   • Lack of consumer demand is a major hurdle for job creation.
   • Income inequality concentrates growth benefits at the top, leaving the bottom struggling.
   • A minimum basic income for low-income groups can boost demand and create jobs.
   • Funding: Reduce subsidies for the better-off and increase taxes on the rich.

Conclusion:

• Welfarism alone won’t solve India’s job crisis. Skill creation is key.
• Sustainable solutions require:
  • Mass-scale vocational training
  • Wage subsidies
  • Technological assistance for rural enterprises
  • Minimum basic income
• Political will and innovative approaches are crucial.

 

 

 

 

Indian Express Editorial Summary

Editorial Topic : India’s Trade Policy Needs a Reset

 GS-3 Mains Exam : Economy

 

 

Question : Analyze the role of WTO engagement in India’s trade policy and its importance for bilateral trade deals with major markets. How can India build leadership in the Global South through proactive WTO participation?

Introduction:

• Active participation in WTO discussions is crucial for successful bilateral trade deals.
• Recent WTO events highlight the need for a better Indian trade policy.

India’s Stance on WTO Expansion:

• India resists expanding WTO negotiations (e-commerce, investment, etc.)
• Aims to preserve policy flexibility for economic development.
• May limit opportunities in digital and high-tech sectors.

Vision 2047 and Global Economic Governance:

• India aims to be a technology-driven developed economy by 2047.
• Global economic rules are changing due to geopolitics, technology, and sustainability.
• India’s rising stature demands a role in managing these changes.

India’s Economic Integration and Opportunities:

• Domestic reforms promote global integration and sustainable growth.
• India ranks 3rd in attracting FDI (Foreign Direct Investment).
• Aims for $1 trillion in goods exports by 2030.
• E-commerce market to reach $350 billion by 2030.
• E-commerce exports are just 1% of total exports, but globally they’re predicted to reach $2 trillion by 2030.

Regulatory Reforms and Commitments:

• E-commerce is driving reforms in data protection, consumer rights, and taxation.
• India is committed to net-zero carbon emissions by 2070.
• Significant achievements in clean energy and emissions reduction.

Evolving Export Strategy:

• Shift from unrestricted domestic policies to predictable policies in key markets.
• Actively participate in WTO negotiations on e-commerce, trade, and investment.

Historical Context and Current Landscape:

• 1991 economic crisis led to trade liberalization reforms.
• Current focus needs to be on digitization, sustainability, and resilient value chains.

Importance of WTO Engagement:

• Crucial for bilateral trade deals with major markets.
• Helps India build leadership in the Global South.
• Ignoring WTO won’t prevent other nations from forming new trade rules.

Future Approach:

• Move away from defensive positions in WTO negotiations.
• Between 2000-2007, India’s trade-to-GDP ratio doubled (12% to 23%).
• To achieve ambitious export targets and GDP growth, India needs a higher trade-to-GDP ratio (ideally 30-35%).
• Extend proactive engagement strategy from G20 to WTO negotiations.

Conclusion:

India’s active participation in G20 and bilateral negotiations demonstrates a forward-looking approach. A similar proactive strategy is needed for WTO negotiations to shape global trade rules and achieve ambitious economic goals.