A Double Dilemma

India's interrelated fight against corruption and unemployment is crucial for inclusive growth, as systemic graft cripples job creation, erodes public trust, and wastes its youth potential

- DEBASISH SUR & MANIK CHAKRABARTY

India, with 1.4 billion people and the world's fifth-largest economy, faces two deeply intertwined challenges—corruption and unemployment. These issues not only impede economic growth but also undermine public trust and frustrate youth aspirations. This article examines how corruption hinders job creation and explores reform strategies drawn from national and global best practices. Addressing corruption is crucial to unlocking India's demographic potential and ensuring inclusive development.

Introduction

India presents a paradoxical narrative: a rising economic power with robust technological innovation, yet burdened by persistent corruption and widespread unemployment. These issues are not independent; they are mutually reinforcing. Corruption diverts resources, distorts public recruitment, and hampers investment, while unemployment breeds disenchantment and fuels informal, corrupt practices.

The Mirage of Progress

While the official unemployment rate (Periodic Labour Force Survey) for 2023-24 stands at a modest 3.2 per cent, a deeper examination reveals a more alarming scenario. In urban India, nearly 10 per cent of youth aged 15-29 is unemployed. Among graduates, the rate is even higher—approximately 18 per cent—indicating a severe mismatch between education and market demand. In states like Kerala, over 30 per cent of graduates are without work despite high educational attainment. Similarly, Haryana reports an urban youth unemployment rate of 23.4 per cent. These figures call into question the efficacy of current educational and employment frameworks. Women face compounded challenges. Although female labor force participation has risen to 41.7 per cent, rural women predominantly engage in low-paid agricultural work. Urban women, despite being more educated, contend with wage discrimination and safety concerns. The economic system fails to convert their labor into meaningful livelihoods.

Corruption: The Silent Job Killer