Seminar by Dhanmanjiri Sathe, ( Gokhale Institute of Politics and Economics, Pune.)

By any reckoning, unemployment (including underemployment) is one of the major challenges facing the Indian economy.

Here we ask WHY unemployment has been so high in India? A historical approach is taken to find this out. The questions asked are: What happened in the Planning period? What happened in the Liberalization period i.e. after 1991? We try to analyse the reasons why labour- intensive industrialization did not happen in India in both the periods, even when labour has been abundant in India.

We look at the answers given within the framework of economics. Finding them wanting, we look for answers in the political, political economy and social domains. Taking an eclectic approach, we argue that unemployment is largely a result of the political conditions and social structures in India.

By any reckoning, unemployment (including underemployment) is one of the major challenges facing the Indian economy.

Here we ask WHY unemployment has been so high in India? A historical approach is taken to find this out. The questions asked are: What happened in the Planning period? What happened in the Liberalization period i.e. after 1991? We try to analyse the reasons why labour- intensive industrialization did not happen in India in both the periods, even when labour has been abundant in India.

We look at the answers given within the framework of economics. Finding them wanting, we look for answers in the political, political economy and social domains. Taking an eclectic approach, we argue that unemployment is largely a result of the political conditions and social structures in India.