Indian Unemployment Conundrum Natural Factors Endowments Puzzle

India’s GDP growth has recovered fast from the global crisis, nonetheless very little is reliably known on whether it has generated adequate employment opportunities or has remained jobless in nature. The rate of unemployment appears stuck at around eight per cent.An issue for policy research thus emerges, why despite India’s factor endowment, organized sector has been choosing to replace labour with capital at this scale and whether there are policy distortions that encourage this which should be corrected. Thus, India has enormous challenges of not only absorbing new entrants to the job market but also clearing the backlog. Demographic disparities have accentuated the problem of unemployment/underemployment. Which is why still one of the three world’s poor is Indian. To realize the cherished dream of ‘inclusive growth’ it is imperative to take immediate steps of capacity building of job-seekers. Vocation training should be accelerated should be accessible to all not restricted to privileged few and also it must be economically affordable. MSME is the panacea of India malady.