Context: 

The recent discourse among India’s political leaders primarily centers around GDP growth rates.

• However, it’s crucial to question whether high GDP figures truly translate into economic prosperity for all.

Concerning Points:

• Job Demand vs. GDP Growth: Despite India’s impressive GDP growth, there’s a concerning rise in the demand for minimum wage work under schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). 
  • India’s real GDP has grown 5.3% (annualised), but demand for MGNREGA work also grew at 5.4% every year.
  • This paradox suggests a disconnect between GDP growth and job creation.
• Quality of Jobs and Social Divides: Approximately 75% of the formal service sector jobs resulting from GDP growth are held by individuals from higher castes. In contrast, 80% of MGNREGA workers belong to oppressed castes, including Dalits, tribals, and backward castes.
• Semiconductor Manufacturing Hype: Focus on job creation rather than chasing high GDP growth. For instance, India’s semiconductor manufacturing venture, while strategically important, offers limited job prospects due to automation. 
  • Traditional industries like automobile, steel, and cement also create fewer low-skilled jobs due to automation, despite contributing to GDP. 

India’s New Mines and Minerals Bill – A Potential Economic Boost:

• India’s new Mines and Minerals (Development and Regulation) Amendment Bill, 2023 (MMA Bill), if well-implemented, can significantly benefit India’s economy.
• Key to Electric Mobility Transition: Minerals like lithium, cobalt, and rare earths are crucial for electric mobility.
  • China’s dominance in this supply chain poses challenges due to its aggressive geo-economic strategies.
• Untapped Mineral Potential: India’s topography offers similar mineral deposits as Afghanistan and Western Australia.
  • However, India has explored only a fraction of its mineral potential.
  • India’s exploration of untapped mining potential offers a path to inclusive economic development and strategic global influence, but careful evaluation is crucial.
• The MMA Bill’s Potential: It seeks to involve the private sector in exploring strategic minerals, including lithium.
  • Mining can generate local, low-skilled jobs and promote social inclusivity, benefiting marginalized castes.

Conclusion

• While GDP growth remains a convenient measure for economists, political leaders must ensure that economic growth translates into tangible benefits for the people. 
• Shifting the narrative from GDP to JDP (Jobs Data Product) can lead to more inclusive and socially beneficial economic development.

News Source: The Hindu 

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