What is the nature of the unemployment problem in India and what are the reasons for it? Discuss the self-employment programmes in India and their limitations.
In short
India's unemployment is largely structural, rooted in disguised rural underemployment, educated youth joblessness, slow labour-intensive industrial growth, mechanisation and seasonal work. Self-employment programmes like PMEGP, DAY-NULM and Mudra have widened opportunities but are limited by skill mismatch, credit and market gaps, scheme fragmentation and leakages.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 255 words
Digital Platforms and Exchanges
The National Career Service (NCS) portal has registered millions and mobilized 7 crore vacancies, though rural digital divides in Andhra Pradesh limit reach. Additionally, over 966 Employment Exchanges3 and 10,000 ITIs provide vocational training, but their uneven effectiveness constrains employment outcomes.
Limited Rural Impact
Despite schemes, many in Andhra Pradesh remain in low-productivity agriculture or informal self-employment due to skill mismatches and poor market access, even with PMMY. The slow structural transformation limits non-farm job creation.
Corruption and Monitoring Issues
Rural employment guarantee schemes4 face corruption and fake muster rolls, reducing effectiveness in Andhra Pradesh. Fragmented scheme implementation and underutilization of funds further weaken outcomes.
Disguised and Educated Unemployment
Underemployment in subsistence agriculture and rising educated youth unemployment due to skill mismatches are prominent in Andhra Pradesh. Expansion of higher education without corresponding job growth fuels frustration.
Skill Development and Market Linkages
Strengthen vocational training aligned with industry needs and improve digital infrastructure in Andhra Pradesh to boost employability and entrepreneurship. Enhancing credit access and market linkages, especially for women and marginalized groups, is also vital.
This model answer is indicative and the model can make mistakes; please verify key facts independently.
Practise this question
1Get the answer sheet
Sized for this question.
2Write your answer
Timed, by hand.
3Get it marked
Your score and what to fix.
This chapter in the exam
Major Challenges of Indian Economy26 questions
Asked in 8 of 8 sittings since 2008
Most tested: Unemployment and employment structure
- 2025Discuss how infrastructure bottlenecks hinder the growth of the Indian Manufacturing sector. What steps can be taken to address them?
- 2025Analyse the factors contributing to India's Current Account Deficit (CAD) and unfavourable Balance of Payments (BoP) and discuss their implications for the Indian economy.
All 26 questions, sorted by sub-topic, with model answers and practice.
Question from the official APPSC Group-I Mains 2020 paper. Answer written by Ghissu's engine and checked against our editorial standards. Found an error? Tell us and we correct it within 48 hours.