Mathur Ritika Passi

Figure 1: India’s Annual GDP Growth Rate
economic collapse. The country’s rising
fiscal deficit, along with a steep rise in oil
prices following the Gulf crisis of 1990, put
pressure on prices and the exchange rate,
giving rise to speculation that devaluation
of the rupee was imminent. This situation
was compounded by political instability
in 1990, as the country witnessed two
changes of prime ministers within a year.
The government of the day was forced to
undertake extensive reforms. The policies
implemented to solve the crisis freed up
India’s product market to the private
sector, both within India and outside.
The government was no longer to have
a monopoly over industry, and industrial
licensing, irrespective of the level of
investment, was done away with. 3
It should, however, be noted the reforms
of 1990-91 did not reform the four
factor markets—labour, land, capital and
entrepreneurship. Over the decades, little
improvement has been witnessed over
these, particularly the first two. The scope
of this chapter in large parts focuses on the
labour market, as it finds prominence in
the SDGs. But it should be noted that land
reform must take place simultaneously to
labour reform if high growth rates are to be
sustained.
Overall, the 10 commandments of SDG
8 target various aspects of economic
growth—from raising employment and
implementing International Labour
Organization (ILO) standard labour
laws and promoting micro, small, and
medium enterprises to focusing on the
environmental aspects of growth. In this
chapter, an attempt has been made to
narrow the significantly broad scope of
SDG 8 to its human resources, i.e., (i) the
importance of creating jobs in India along
with reforming the country’s labour laws;
(ii) equipping the youth with the right skills
in order for the country to reap the benefits
of its demographic dividend; and (iii)
empowering its citizens by including them
in the formal financial framework. These
effectively also figure as high priorities for
the Indian government.
Generating Employment and
Protecting Labour
The need to create job opportunities is
mentioned in four out of the ten targets
under SDG 8—8.2 focuses on labourintensive
sectors, 8.3 on decent job creation,
8.5 on full and productive employment
and decent work for men and women, and
8.6 on reducing the number of youth not
in employment (through education and
training).
In India, one million people per month are
added to the job market and consistent
GDP growth is needed to provide them
with constructive employment. In 2010,
the Indian economy achieved its highest
GDP growth rate of 10.3%. However,
partly because of external factors and
partly due to internal failings, the growth
rate plunged to 5.1% in 2012. The impact
on employment was significant, as surveys
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