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Rethinking India's Growth-Obsessed Economic Policy: From Chasing Trillions to Creating Jobs

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  • Sinha, Rishabh

Abstract

India's economic policy has long been obsessed with high growth rates, often sidelining other crucial goals like job creation, which has lagged significantly. In light of this slow job growth, critics are now pushing for a greater emphasis on employment, arguing it's vital for sustaining economic progress. However, this paper argues that these criticisms are misguided. The connection between job creation and growth is both theoretically and empirically weak. Moreover, these critiques mistakenly prioritize economic growth as the end goal despite its tenuous link to welfare metrics such as job creation. Instead, the paper calls for a fundamental shift in policy focus: from chasing growth targets to addressing concrete measures of economic well-being, such as robust job creation, to more effectively enhance societal welfare and tackle broader socioeconomic issues.

Suggested Citation

  • Sinha, Rishabh, 2024. "Rethinking India's Growth-Obsessed Economic Policy: From Chasing Trillions to Creating Jobs," MPRA Paper 122002, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122002
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    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
    3. Souryabrata Mohapatra & Sanjib Pohit, 2024. "Charting the path to a developed India: Viksit Bharat 2047," NCAER Working Papers 167, National Council of Applied Economic Research.
    4. Charles I. Jones & Peter J. Klenow, 2016. "Beyond GDP? Welfare across Countries and Time," American Economic Review, American Economic Association, vol. 106(9), pages 2426-2457, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic policy; Economic growth; Jobs; Employment; Welfare; India;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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