Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
1) “Despite India’s outstanding growth in the last two decades, low pay and wage inequality remain serious obstacles towards achieving inclusive growth. An effective minimum wage policy that targets the vulnerable bottom rung of wage earners can help in driving up aggregate demand, and building and strengthening the middle class, and thus spur a phase of sustainable and inclusive growth”. Comment. (250 words)
Why this question:
The article highlights how in recent years, minimum wage systems have been strengthened by many countries to lift workers out of poverty and to reduce levels of inequality.
Key demand of the question:
The answer must bring out the relevance of minimum wage policy to Indian scenario and in what way it can be a game changer in alleviating people out of poverty and spurring sustainable and inclusive growth.
Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.
Structure of the answer:
In brief explain what you understand by minimum wage policy.
Start by discussing the on going debate of the concept of minimum wage policy in economic survey. The Survey advises that the proposed labour code should include a provision for a minimum wage for both informal and formal sector workers, as 93% of the labour force is engaged in unorganized work.
Discuss how and why India needs to have a mandatory national-level minimum wage to promote social justice and curb distress migration.
Discuss both the positives and negatives of such a policy.
Conclude with a fair and balanced approach.