Question:

Explain the means of creating more employment in the Indian economy.

Updated On: Oct 11, 2025
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Solution and Explanation

Answer: Employment generation is a key challenge for the Indian economy due to a large population and rising workforce. Creating more jobs requires efforts across agriculture, industry, services, and government initiatives.

Means of Creating More Employment

  • Agriculture Development:
    • Provide irrigation facilities to reduce dependence on monsoon.
    • Encourage crop diversification and modern farming techniques.
    • Promote agro-based industries to absorb surplus labor.
  • Rural Non-Farm Activities:
    • Support cottage and handicraft industries.
    • Encourage dairy farming, poultry, fisheries, and horticulture.
    • Develop rural infrastructure like roads, electricity, and storage to promote small businesses.
  • Industrial Growth:
    • Promote small-scale industries (SSIs) and micro-enterprises for local employment.
    • Encourage establishment of new industries in semi-urban and rural areas.
    • Adopt labor-intensive techniques in certain industries to absorb more workers.
  • Service Sector Expansion:
    • Develop tourism, transport, retail trade, and IT-enabled services.
    • Expand education and healthcare sectors, which generate large-scale employment.
  • Government Schemes and Public Works:
    • Programs like MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) provide rural jobs through public works.
    • Investments in infrastructure projects such as roads, railways, housing, and irrigation create both direct and indirect employment.
  • Skill Development and Education:
    • Introduce vocational training and skill development programs to make youth employable.
    • Link education with market demand and entrepreneurship training.
  • Promotion of Self-Employment:
    • Encourage startups and entrepreneurship through easy credit and subsidies.
    • Provide training and resources for self-help groups (SHGs), especially women.

Conclusion

Employment in India can be increased by focusing on agriculture modernization, industrialization, service expansion, rural development, and government initiatives. Along with this, skill development and entrepreneurship are crucial for ensuring that the growing workforce finds productive opportunities, reducing unemployment and underemployment.

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