Decline in Campus placements at Premier Institutions in India | Current Affairs | Vision IAS
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    Decline in Campus placements at Premier Institutions in India

    Posted 05 Apr 2024

    2 min read

    • Reasons for decline include global economic slowdown, lack of international firms coming to campuses, etc.
    • The decline in placement and increasing unemployment [8% in Feb 2024 (CMIE)] has also raised concerns regarding jobless growth in India.
    • Jobless growth is a phenomenon where increase in employment opportunities and job creation takes place at a slower rate than that of economic growth.

     

    • Reasons for jobless growth in India
      • Increasing investments in capital equipment and automation: Automation is said to threaten 69% of the jobs in India (World Bank).
      • Sectoral inefficiencies: Primary sector employs >50% of India’s workforce while contributing <20% to GDP.
      • Labor market rigidity: Pushed employers towards more capital intensive modes of production than labor-intensive ones.
      • Poor employability: Only 50.3% of country’s youth are considered employable. (India Skills Report, 2023)
      • Poor participation in Global Value Chains (GVCs): India’s GVC participation declined to 41.3% by 2018.

    Initiatives to improve employability

    • National Skill Development Mission (NSDM) launched in 2015.
    • National Apprenticeship Promotion Scheme (NAPS).
    • Schemes to boost manufacturing sector: Make in India initiative; Industrial Corridor Development Programme; Production Linked Incentive scheme, etc.

     

    • Way Forward
      • Skilling of labor force: To bridge the gap between demand and supply of skills and qualifications.
      • Incentives to labor-intensive sectors: PLI schemes, employment subsidies, etc., to sectors such as textile, Auto sector, etc.
      • Modernization and diversification of Agriculture sector: To address sectoral inefficiencies.
    • Tags :
    • Jobless growth
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