Employment policy in India

Nearly four decades have elapsed since India became indepen dent. Immediately after Independence it declared itself a sovereign democratic republic and formulated a Constitution of its own. It opted for mixed economy where both the private and the public sectors assigned definite role in the process of development. In 1950 it launched the First Five Year Plan. Since then India has successfully completed six Five Year Plans and three Annual Plans and have just introduced its Seventh Five Year Plan.

Almost certainly the most striking fact has been the large amount of economic progress accomplished in such a short time. India has maintained a growth trend of 3.5 per cent during the period. It has placed itself amongst the top 10 industrialised nations of the World. Net capital formation as percentage of national income was 16.9 per cent in 1981-82 and saving as percent age of national income was 19 during the same period. Yet the mood among the leaders is more one of disappointment than of satisfaction. Partly they expressed their dissatisfaction by making comparisons between living standards in India and those prevail ing in developed countries. But apart from this, the process of economic development does not seem to be bringing forth its expected fruits. The poverty is on increase. The number of poor and unemployed has gone up at the end of every successive Five Year Plans. The population explosion which has resulted mainly from improved health services eats a large part of the growth in national product.