Employment and economic growth in India: An empirical analysis of selected states Parveen Nahid1, Kumar Sanjeev2 1Assistant Professor, Z. H. D. (E) College, University of Delhi, Delhi, India. Email id: nahideco@gmail.com 2Assistant Professor, Department of Economics, University of Lucknow, Lucknow, India. Email id: sanjeeveco@gmail.com JEL Classification: F43, E24, J21 Online published on 23 November, 2018. Abstract After initiation of economic reforms, India has made great progress in economic growth and employment. Achieving regional equality has been and continues to be one of the prime concerns of development policy in India. States within India differ greatly in terms of economic growth and employment potential. This paper examines trends, patterns and relationship of employment and growth in India during last thirty years for fourteen selected major states. The result indicates that most of the states recorded employment growth during the later period in the informal sector. The consolidated employment growth in the post-reform period has been declined sharply. Employment growth is faster in states that have had initially more diversified economies. It is also observed that Haryana have attained a highest growth in NSDP among the states followed by Gujarat, Andhra Pradesh, Kerala, Maharashtra and Karnataka in that order. The regression results of random effect model (REM) confirm that growth rate of employment have a significant positive impact on the growth rate of employment at the state level. Further, the inter-state variation in employment and growth has serious implications not only for equity, but also for the sustainability of a high growth rate of NSDP as well as employment opportunities. It will need good governance and deeper involvement of local people in the development processes to enhance employment and growth. Top Keywords Growth, NSDP, Employment and Random Effect Model. Top |