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By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India’s labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.

Q.
Which of the following is the most rational inference from the above passage?
  • a)
    India must control its population growth so as to reduce its unemployment rate.
  • b)
    Labour reforms are required in India to make optimum use of its vast labour force productively
  • c)
    India is poised to achieve the double-digit growth very soon
  • d)
    India is capable of supplying skilled young people to oil countries.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
By 2020, when the global economy is expected to run short of 56 millio...
The passage, in our words, can be re-written as – a shortage of labour force is imminent and if India wants to tap into this opportunity with its young labour force, labour reforms are a necessity. Everything else is customary paraphernalia to underscore this suggestion.
Now let us evaluate the options and check which one comes closest to our understanding of the passage:
(a) India must control its population growth so as to reduce its unemployment rate…Passage is about labour reforms and not population control…..OUT
(b) Labour reforms are required in India to make optimum use of its vast labour force productively…This is what gels well with our understanding of the passage…ANSWER
(c) India is poised to achieve the double-digit growth very soon…..Passage suggests that India can achieve double-digit growth if we take care of labour reforms and not that such growth is automatic and imminent……OUT
(d) India is capable of supplying skilled young people to oil countries……Supplying young people to other countries? And oil countries in specific??…..OUT
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By 2020, when the global economy is expected to run short of 56 millio...


Labour Reforms Required in India

India, with its significant youth surplus, has the potential to fill the global gap in the labour force by 2020. However, to make optimum use of this vast labour force productively, labour reforms are essential.

Current Scenario

- In 2014, India had a labour force of about 40 per cent of the population, with 93 per cent of it in the unorganized sector.
- The compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent over the last decade.
- Only about 14 million jobs were created last year, despite an increase of about 15 million in the labour force.

Significance of Labour Reforms

- Labour reforms can help in improving the efficiency and productivity of the workforce.
- By providing a conducive environment for businesses, reforms can attract investments and create more job opportunities.
- Reforms can also address issues such as skill development, social security, and working conditions, leading to overall growth in the economy.

Conclusion

In conclusion, labour reforms are crucial for India to unlock its double-digit growth potential and make the best use of its youth surplus. By implementing reforms that address the challenges faced by the labour force, India can capitalize on its demographic advantage and contribute significantly to the global economy.
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By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India’s labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.Q.Which of the following is the most rational inference from the above passage?a)India must control its population growth so as to reduce its unemployment rate.b)Labour reforms are required in India to make optimum use of its vast labour force productivelyc)India is poised to achieve the double-digit growth very soond)India is capable of supplying skilled young people to oil countries.Correct answer is option 'B'. Can you explain this answer? for UPSC 2026 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India’s labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.Q.Which of the following is the most rational inference from the above passage?a)India must control its population growth so as to reduce its unemployment rate.b)Labour reforms are required in India to make optimum use of its vast labour force productivelyc)India is poised to achieve the double-digit growth very soond)India is capable of supplying skilled young people to oil countries.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India’s labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.Q.Which of the following is the most rational inference from the above passage?a)India must control its population growth so as to reduce its unemployment rate.b)Labour reforms are required in India to make optimum use of its vast labour force productivelyc)India is poised to achieve the double-digit growth very soond)India is capable of supplying skilled young people to oil countries.Correct answer is option 'B'. Can you explain this answer?.
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Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.Q.Which of the following is the most rational inference from the above passage?a)India must control its population growth so as to reduce its unemployment rate.b)Labour reforms are required in India to make optimum use of its vast labour force productivelyc)India is poised to achieve the double-digit growth very soond)India is capable of supplying skilled young people to oil countries.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India’s labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.Q.Which of the following is the most rational inference from the above passage?a)India must control its population growth so as to reduce its unemployment rate.b)Labour reforms are required in India to make optimum use of its vast labour force productivelyc)India is poised to achieve the double-digit growth very soond)India is capable of supplying skilled young people to oil countries.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India’s labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.Q.Which of the following is the most rational inference from the above passage?a)India must control its population growth so as to reduce its unemployment rate.b)Labour reforms are required in India to make optimum use of its vast labour force productivelyc)India is poised to achieve the double-digit growth very soond)India is capable of supplying skilled young people to oil countries.Correct answer is option 'B'. 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Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.Q.Which of the following is the most rational inference from the above passage?a)India must control its population growth so as to reduce its unemployment rate.b)Labour reforms are required in India to make optimum use of its vast labour force productivelyc)India is poised to achieve the double-digit growth very soond)India is capable of supplying skilled young people to oil countries.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India’s labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0.5 per cent, with about 14 million jobs created during last year when the labour force increased by about 15 million.Q.Which of the following is the most rational inference from the above passage?a)India must control its population growth so as to reduce its unemployment rate.b)Labour reforms are required in India to make optimum use of its vast labour force productivelyc)India is poised to achieve the double-digit growth very soond)India is capable of supplying skilled young people to oil countries.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice UPSC tests.
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