India should shift from labour-intensive mode of production to capital-intensive mode of production, says Economic Survey 2018-19.
India has the highest unemployment rate in the past 45 years. One of the key focus of Budget 2019 is to generate employment for people. Thus, the Economic Survey 2018-19 focusses on encouraging investments.
The Economic Survey says that countries having the highest investment rates also created the most jobs. It says higher investments will enhance productivity and hence increase international competitiveness.
Citing an example of the use of computers and software, the Survey states that though some white-collar jobs are lost with the arrival of computers, they have also generated new labour- centric tasks related to software and application development, computer security, and specialised tasks for loan application analysts and medical equipment technicians.
Therefore, the economic survey concludes, job creation can indeed be fostered by encouraging investment.
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