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Earlier works of development scholars such as Ajit Ghosh, Deepak Nayyar, Raghuram Rajan and more recently Rohit Lamba, have highlighted a roadmap to revive employment-intensive sectors and those left behind by the current development model. Focused on creating opportunities.
For example, micro, small and medium enterprises (MSMEs) are important for providing employment to unskilled and semi-skilled workers.
With the right policies – such as reducing bureaucratic red tape, ensuring easy access to credit and integrating MSMEs into digital and global supply chains – India can harness the full potential of the sector.
Ajit Ghosh’s analysis in his paper ” highlights how a thriving MSME sector can absorb millions of workers currently trapped in the unorganized sector, providing them better wages and job security.
However, the government has failed to prioritize these important reforms. Instead of promoting an enabling environment for MSME growth, the government is focusing on high-profile but ultimately ineffective initiatives, unable to address the deeper structural issues hindering progress.
Despite this, investment in infrastructure, regulatory streamlining and vocational training programs is crucial for these sectors to flourish which is still inadequate.
Sectors such as tourism, healthcare and education have immense potential, yet these low value-added, skill-based services have been largely ignored by the current government.
As Raghuram Rajan and Rohit Lamba have proposed, these labor-intensive services are accessible to workers with basic skills and are essential for underemployed workers. The lack of government investment in these sectors means millions of people are left out of economic benefits, making inequality worse rather than better.
