All Things Policy Under-Employment and a FASTER Idea to Solve It
Jul 24, 2025
Explore the issue of underemployment in India, where many graduates are stuck in low-skill jobs. Discover how innovative policies, like the FASTER initiative, aim to create industrial cities and enhance job opportunities. Learn about specialized trade regions designed to foster local economic growth. The discussion also highlights the strategic implementation of prototypes in union territories to combat underemployment, with potential to create millions of jobs annually. It's a deep dive into finding real solutions for a complex problem!
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Underemployment Crisis Scale
- Underemployment is a major but under-discussed job crisis issue in India, affecting productivity and wages.
- About 70% of Indian graduates work in low-skill jobs far below their qualifications, showing massive underemployment.
Factor Market Barriers Explained
- India's labor-intensive sectors face big factor market barriers: restrictive labor laws, complex land markets, high levies, tough credit, and poor logistics.
- These barriers prevent scaling, investment, and competitive manufacturing growth.
Create Special Economic Regions
- Creating large special trade and economic regions with differential labor, land, and tax rules can overcome systemic barriers.
- These regions should enable industry via tailored codes, not just tax holidays or isolated land parcels.