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Whats the reason for rising unemployment in India ?

India is producing large number of fresher graduates every year. But employment opportunities are negligible. What do you think is happening in India?

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    Apr 25 2013: Majority of the huge number of Engineering graduates that are being "manufactured" in India are unemployable mainly because the quality of education is poor.
    They have poor communication skills, poor subject knowledge and even the so called top students in most colleges only by heart the subject matter and do not have any practical knowledge.
    Also politics and corruption play a huge role....
  • Apr 25 2013: We talk of large number of graduates passing out of colleges without quality education. We talk of Governmental policies that do not ensure jobs for everyone et all. Yet the basic fact remains unanswered. Can we stop our progeny to get education - quality or no quality is another matter. Can any government in the world ensure jobs for each and every hand. The answer is "NO, NEVER". So where lies the solution to the malady? To have the solution we must have an insight to the malady itself. The malady is not education but the mode of education. Many of us may have read the opinion of Lord Macaulay in Facebook in which he seems to have propagated that to mitigate India, its traditions and social customs have to be broken. I do not know if that was true or not but what is true that we ourselves have broken our traditional mode of education. Remember, in earlier days, the education meant that you learn ropes of some self-employment - be it weaving cane furniture, pottery, weaving cloth, making idols etc. Now, all that is missing. From Nursery to Post-graduation we are taught to acquire a good job and be at the beck and call of someone. Industriousness is lacking. So, all those who are passing out just trying to get a job and not being self-employed. If the education now includes ways to make children industrious, then there will be lot less hands that seek jobs. Modern and relevant self industrious courses like packaging, printing, dying, tool making, making household utilities combined with knowledge of promotion and packaging will definitely pave the way for our unemployed youth. This can be started at any age, any class and with any education.
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      Apr 25 2013: Such self industrious courses are already in existence.
      And many are taking them which has resulted in a large number micro and small enterprises.
      But since the Population of India is so large that such courses will not help everyone.
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    May 2 2013: Vivek, I am no expert on your country .. what I offer is my opinion ... no offense is intended. The political make up of your country will make it difficult to entice businesses. The many parties, the curruption, the cultural barriers, all make for a unstable business climate.

    Disputes with China and Pakistan and internal strife tend to make more news that the progress that has been made. India is a favorite of the USA as a outsource location as well as many other countries. However, as times have become rough economically and politically worldwide many of the outsources have been recalled to the home country. As India has raised it base wages and a large middleclass is occuring it also takes away the "cheap" man power pool that origionally brought the businesses. China is another spot to outsource but they even found that to further outsource to Africa was moneymaking for them.

    With over half of the economy based on services the GDP will rise and fall often.

    It is my opinion that India will become a force to be reconned with in the next decade or so .... I base this on the technological, education, manpower, and geography of India.

    If you compare where India was in the 1950 as to where it is today the change is great. This was accomplished in spite of the political problems that have plagued India.

    The loss is in the service sector ... expand the industrial ... and seek a better business climate.

    I wish you well. Bob.
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    Apr 28 2013: I think it is because Indian education system creates excellent employees not decent employers. Indian politicians promise jobs they don't promise opportunities that can create jobs. Average Indian psyche is to play safe not adventure. An average Indian will work for money and will not pit his/her talents for money to work for him/her.

    But this is changing. I know as many as three Indian CEOs below 25 years of age. One is 17 and still cannot operate finance since he is a minor.
  • Apr 25 2013: You have entered an era where classical or Ricaardian economics is the best model to discribe your problems. Ricardo tells us this can happen as the number of workers increases, and in India it's a dramatic increase. China understood this.
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    Apr 24 2013: As you live in India, what is your take on the situation? I have read that there are big businesses and large numbers of businesses that have no employees other than the proprietor, and that there is little between those poles.
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    Apr 24 2013: finally the government managed to screw up decades of progress. you can count on us. if you want to stop progress, just implement western economic policies. implement central banks, create inflation, create red tape, put up tariffs, quotas, raise tax, hand out subsidies, build toward a welfare state. failure is assured.
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    Apr 24 2013: The government bureaucracy makes it too difficult for a business to start there or move there.