The reasons why unemployment is growing in India

Today in my post I will discuss various reasons for unemployment in India. Considering the fact, with the population of 1.4 million it is not easy to provide employment opportunities to all. The Indian government is taking necessary steps to control the situation. Programs like ‘Make in India,' ‘Digital India’ ‘Skill India’ and ‘Start-up India’ to identify local talent and provide employment opportunities to youth.

In spite of all this initiatives youth is still facing challenges to finding jobs. As per BBC statistics every year approximately 12 million graduates are coming into the job market, and only a few people are succeeding to land in corporates. If we make a list there are so many challenges; the unemployment rate is high in urban areas than rural areas. Government is providing employment opportunities to unskilled labor for 100 days a year for every adult in the house.

"Unemployment in India is projected to increase from 17.7 million last year to 17.8 million in 2017 and 18 million next year. In percentage terms, the unemployment rate will remain at 3.4 per cent in 2017-18," - Source

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The unemployment rate in India was 7.97 percent last year, as we discussed rural unemployment at 7.15 percent and urban unemployment at 9.62 percent and estimated that the percentage would increase 5-10 more with declining IT sector in India. Influence of automation, artificial intelligence and stricter visa norms in different countries, whatever the reason maybe major IT companies in the country are reducing its human resources.

Many experts conclude that India is only focusing and depending on the services sector and need to shift its paradigm towards large and medium scale manufacturing industries. In last decade the small and medium scale industries have seen huge downfall because of insufficient capital and competition from foreign players leading unemployment for many people.

Major reasons for unemployment:

1. Theoretical education: thousands of graduates are coming out of universities every year but are they competent enough to prove them self in the market. All most in all regional universities are only focusing one marks rather than real knowledge.
2. Slow Growth of Industrialisation
3. Less Savings and Investment:
4. Increasing population.

Unemployment is a serious problem for any developing country, and the government needs to implement more programs to empower educated youth in the country otherwise this can lead youth to go in the wrong direction. We will try to address possible challenges for unemployment in India. We will discuss the reasons for details and possible solutions to control unemployment.