The biggest issue going forward for India is that those thrown out jobs be helped to find new jobs.

Firms will wanna replace old workers with younger 2 save costs. There will be further incentives 2 do so owing local sons-of-soil considerations.

Unemployment could turn permanent for many unless we focus on job creation to the exclusion of all else.

Mass unemployment further cripples demand in the economy. That means we won’t grow at all 4 a couple of years.

A depression looms.
That means we must have expanded public works to absorb labour at the bottom of the pyramid in order to backstop wages as well make sure that those better qualified find jobs.

Public works need to be productive as well as productivity enhancing.
That is best accomplished by upgrading roads, power, sanitation & water works in small town across the country. Pick one or two from each district, and keep rotating them.

Try to capture some of the value so created with property taxes.
But focus on jobs to the exclusion of all else.

We face a full fledged dystopia if the economy fails to create sufficient jobs immediately to accommodate all those who have lost their livelihood.

It is not about growth. It is about jobs. Growth will follow if we create jobs.
You can follow @sonaliranade.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled: