 Generating Employment in India: A SuggestionAmbar Ghosh () and
Dipti Ghosh
A chapter in Analytical Issues in Growth & Structural Change, Macroeconomy, Security, and Sustainability of India's Economic Development, 2026, pp 89-117 from Springer Abstract: Abstract Unemployment is a burning issue in India. In the post-reform period, employment had been more or less stagnant in the organized sector even though average annual growth rates of both GDP and value added of the organized sector at constant prices were quite high. Using a macro model that hopefully captures the salient features of the Indian economy, this paper suggests a way out. It derives the result that the larger the stock of infrastructure capital in the unorganized sector, the larger will be the levels of output and employment in both the sectors. It also shows that, if the government invests in infrastructure in the unorganized sector and finances it by taxing capitalists’ income, employment will go up significantly. The policy will also heap considerable benefits on the poor. However, if the government finances its investment expenditure by imposing indirect taxes, employment and output levels are likely to contract in both the sectors. Keywords: Organized sector; Unorganized sector; Employment; Investment; Income tax; Indirect tax (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-95-5242-9_6 Ordering information: This item can be ordered from DOI: 10.1007/978-981-95-5242-9_6 Access Statistics for this chapter More chapters in India Studies in Business and Economics from Springer |
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