Explain the various causes of unemployment in India.
Explain the various causes of unemployment in India.
The causes of unemployment in India are given below
(i) Slow economic growth - In Indian economy, the rate of economic growth is very slow. This slow growth rate fails to provide enough employment opportunities to the rising population. Supply of labour is much more than the available employment opportunities.
(ii) Rapid growth of population - Constant increase in population has been a grave problem of India. It is one of the main causes of unemployment. The number of unemployed persons has actually increased instead of decreasing during the plan period.
(iii) Faulty employment planning - The Five Year Plans in India have not been designed for employment generation. A frontal attack to solve the problem of unemployment was missing. In the FYPs, it was assumed that economic growth will take care of unemployment problem.
(iv) Excessive use of foreign technology - There is lack of scientific and technical research in India due to its high cost. This has resulted in excessive use of foreign technology which has led to technical unemployment in our country.
(v) Lack of financial resources - The expansion and diversification programme of agriculture and small scale industries have suffered because of lack of financial resources.
(vi) Agriculture still a seasonal occupation - Even after approximately 70 years of Independence, agriculture in India, still does not have access to adequate irrigation facilities, rendering it to be a seasonal occupation. Because of this, the workforce engaged in farming activities remain unemployed for 3-4 months in a year.
(vii) Decay of cottage and small industries - The cottage and small industries are labour-intensive and generate a number of employment opportunities. But the British rule led to their decay and the government of independent India did not initiate adequate measures for their revival. This compounded the problem of unemployment.
(viii) Low savings and investment - In India, a low rate of capital formation prevails due to low savings and investment. Shortage of capital prevents a business to expand and grow, thus limiting their power to generate employment.
(ix) Mobility of labour - In India, mobility of labour is quite low. Because of family obligations, social constraints, language and cultural barriers, people are unwilling to move to a new place when offered a job there. This is also a cause for unemployment in India.
The causes of unemployment in India are given below
(i) Slow economic growth - In Indian economy, the rate of economic growth is very slow. This slow growth rate fails to provide enough employment opportunities to the rising population. Supply of labour is much more than the available employment opportunities.
(ii) Rapid growth of population - Constant increase in population has been a grave problem of India. It is one of the main causes of unemployment. The number of unemployed persons has actually increased instead of decreasing during the plan period.
(iii) Faulty employment planning - The Five Year Plans in India have not been designed for employment generation. A frontal attack to solve the problem of unemployment was missing. In the FYPs, it was assumed that economic growth will take care of unemployment problem.
(iv) Excessive use of foreign technology - There is lack of scientific and technical research in India due to its high cost. This has resulted in excessive use of foreign technology which has led to technical unemployment in our country.
(v) Lack of financial resources - The expansion and diversification programme of agriculture and small scale industries have suffered because of lack of financial resources.
(vi) Agriculture still a seasonal occupation - Even after approximately 70 years of Independence, agriculture in India, still does not have access to adequate irrigation facilities, rendering it to be a seasonal occupation. Because of this, the workforce engaged in farming activities remain unemployed for 3-4 months in a year.
(vii) Decay of cottage and small industries - The cottage and small industries are labour-intensive and generate a number of employment opportunities. But the British rule led to their decay and the government of independent India did not initiate adequate measures for their revival. This compounded the problem of unemployment.
(viii) Low savings and investment - In India, a low rate of capital formation prevails due to low savings and investment. Shortage of capital prevents a business to expand and grow, thus limiting their power to generate employment.
(ix) Mobility of labour - In India, mobility of labour is quite low. Because of family obligations, social constraints, language and cultural barriers, people are unwilling to move to a new place when offered a job there. This is also a cause for unemployment in India.
