Fiscal Policy, Public Expenditure and Jobless Growth

Fiscal Policy, Public Expenditure and Jobless Growth

India has experienced periods of sustained economic growth without a proportional rise in employment, a phenomenon often described as jobless growth, particularly noticeable since the early 2010s. Fiscal policy and effective public expenditure management can play a crucial role in addressing this challenge. One important strategy is to reorient government spending toward labour-intensive sectors such as micro, small and medium enterprises (MSMEs), construction, textiles, food processing, and the care economy. Increased capital expenditure on infrastructure also generates significant employment multipliers through the creation of roads, railways, logisti