Policy Watch: Growth with Employment – March 2026

This issue of Policy Watch by the Rajiv Gandhi Institute for Contemporary Studies (RGICS), curated by Prof. Somnath Ghosh and Vijay Mahajan, brings together a curated set of articles—many of which have been previously published in leading national and international media platforms—to critically examine the evolving relationship between economic growth and employment in India.

The discussion opens with CP Chandrasekhar and Jayati Ghosh, who challenge the assumption that GDP growth automatically generates jobs, highlighting a weakening link between growth and employment. Sujoy Chakravarty further underscores India’s structural employment crisis, marked by stagnant job growth, rising youth unemployment, and the effects of automation and climate change. Drawing on the State of Working India 2026, Siddharth Upasani reveals the limited availability of stable, salaried jobs even for educated youth.

Soutik Biswas explores the growing mismatch between aspirations and opportunities, noting that job creation has not kept pace with the increasing number of graduates. Complementing this, insights based on NITI Aayog data point to uneven employment generation, informality, and regional and gender disparities. In contrast, Nilanjan Ghosh and Arya Roy Bardhan question the hypothesis of “jobless growth,” suggesting that employment expansion has occurred, albeit unevenly.

Prabhat Patnaik critiques conventional employment metrics, using indicators such as inequality and deprivation to highlight deeper structural challenges. In the concluding articles, Prof. Somnath Ghosh questions the reliability of official economic indicators, while Vijay Mahajan proposes a forward-looking agenda focused on labour-intensive sectors and inclusive development.

The issue makes a compelling case for rethinking growth pathways to achieve employment-led, inclusive, and sustainable development.

Keywords: Growth with Employment, Youth Unemployment India, Jobless Growth, Employment Crisis India, Labour Market India, Inclusive Growth, Sustainable Livelihoods, Automation and Jobs, Climate Change and Employment, Rural Livelihoods, Labour-Intensive Growth.