A question of time

Abstract

Time does not move at the same pace for everyone, and today, the Indian labour market seems to be moving much more slowly than the rest of the economy. Structural problems in the labour market persist during a period of high economic growth, including a poorly performing framework of labour institutions and regulation, gender imbalances, inadequate skills and antiquated agrarian relations, all of which are important causes of growing inequality. The experience of the last decade needs to be analysed better for the next decade to deliver rapid growth in quality employment. And for the longer term, while there are too many unknowns to judge whether the Indian economy can continue on its growth path, if the aim is a high income society fostering widespread opportunity and participation, the experience of other countries shows that policies to prevent inequality from rising need to be put in place early.