The Warning Beyond NEET

The Jantar Mantar protests exposed the widening gap between education, employment and growth. The month-long protest at Delhi's Jantar Mantar may have formally ended, but the political and economic questions it raised will linger. Triggered by the NEET paper leak, the movement became a major expression of youth discontent. What began as a demand for a fair examination system became a broader indictment of an economic model that promises opportunity but increasingly fails to deliver...

min read

The Jantar Mantar protests exposed the widening gap between education, employment and growth. The month-long protest at Delhi's Jantar Mantar may have formally ended, but the political and economic questions it raised will linger. Triggered by the NEET paper leak, the movement became a major expression of youth discontent. What began as a demand for a fair examination system became a broader indictment of an economic model that promises opportunity but increasingly fails to deliver employment. The government initially treated the protests as a law-and-order issue. That changed when the Rashtriya Swayamsevak Sangh (RSS), the ideological fountainhead of the ruling establishment, publicly criticised police action and expressed solidarity with the students. The subsequent resignation of Union Education Minister Dharmendra Pradhan, withdrawal of criminal cases and RSS chief Mohan Bhagwat's endorsement of the integrity and aspirations of India's Gen Z transformed the political narrative. The issue had moved beyond examination reform to whether India's development model is serving its young citizens. The NEET paper leak was merely the spark. The fuel had accumulated through rising educated unemployment, declining confidence in public institutions and growing frustration among millions of young Indians. Education is increasingly seen as an uncertain investment rather than a guaranteed pathway to opportunity. Every examination scandal reinforces the perception that merit alone is insufficient, while recruitment delays deepen the belief that the system is failing those who have done everything expected of them. India has celebrated its demographic dividend for nearly two decades, projecting its young workforce as its greatest competitive advantage. But demographic dividends are never automatic. They generate prosperity only when education is matched by employment, productivity and rising incomes. Otherwise, they become demographic liabilities that breed frustration rather than growth. The evidence suggests India is approaching that inflection point. GDP has expanded impressively over the past two decades, yet employment has failed to keep pace. Employment elasticity has weakened sharply. During the 1980s, every percentage point of GDP growth generated roughly half a percentage point increase in employment. Today the ratio is estimated at about 0.16, among the lowest for major emerging economies. Growth continues; jobs do not. This disconnect reflects India's growth strategy. Public policy has increasingly favoured capital-intensive industries through subsidies, tax incentives and investment support. Such sectors contribute to output and productivity but generate relatively fewer jobs. Agriculture continues to suffer from incomplete reforms and low productivity. Manufacturing has not expanded fast enough to absorb new workers, while artificial intelligence and automation are reducing opportunities in occupations once regarded as gateways to middle-class prosperity. India thus faces a paradox: it is producing more graduates while creating fewer opportunities to absorb them. The comparison with Asia is instructive. Vietnam and Bangladesh have pursued manufacturing-led growth that has generated substantially higher employment relative to economic expansion. Vietnam's employment-to-population ratio is estimated at nearly three-fourths, compared with about one-half in India. Vietnam has also moved into the upper-middle-income category, while India remains a lower-middle-income economy. These comparisons do not diminish India's achievements. They highlight the urgency of correcting structural weaknesses before they become politically destabilising. History demonstrates the risks of prolonged youth unemployment. The Arab Spring showed how educated but unemployed youth can transform political landscapes. More recently, political instability in Bangladesh and Nepal has reflected frustration among younger populations facing shrinking opportunities. India's democratic institutions are stronger, and its circumstances are different. Yet no democracy can indefinitely ignore the aspirations of its largest demographic group. The significance of Jantar Mantar lies here. India's Gen Z is organised, digitally connected and politically conscious. Social media transformed local grievances into a national movement within days, while traditional political parties largely responded after the sentiment had acquired independent momentum. The RSS intervention further complicated the government's challenge. Once protesting students found resonance within the ideological ecosystem closest to the ruling establishment, the issue ceased to be a partisan confrontation. It became an internal warning that India's youth expect credible institutions, transparent examinations and, above all, meaningful employment. The Centre's examination reforms are necessary but insufficient. Restoring the credibility of competitive examinations addresses only one symptom. The larger challenge is to redesign India's growth strategy around employment. Labour-intensive manufacturing, support for small and medium enterprises, investment in skills, higher-education reform and greater attention to employment outcomes must become central to economic planning. The Jantar Mantar agitation should not be remembered simply as the NEET protests. It marked a moment when India's youngest generation questioned the assumptions underlying the country's development model. Governments can manage protests and reform examinations. But unless economic growth translates into broad-based employment, similar movements will return. India's demographic dividend remains its greatest opportunity. It could equally become its greatest challenge. The warning has been delivered. The question is whether policymakers are prepared to listen.

Cabbies bay for fare hike

Quaid Najmi
May 15
3 min read

State slashes VAT on jet fuel

Mumbai: Even as the Maharashtra government moved swiftly to cushion the aviation sector by slashing Value Added Tax (VAT) on Aviation Turbine Fuel (ATF) from 18 pc to 7 pc, sections of Mumbai’s cab unions demanded an immediate fare hike following the latest increase in compressed natural gas (CNG) prices by Mahanagar Gas Limited (MGL).

The VAT reduction on jet fuel will remain in force for six months - May 15-Nov 14 - vide an official notification issued today.

The move is expected to provide substantial relief to airlines battling spiraling operational costs amid fears that the escalating West Asia crisis could further disrupt global fuel supplies and inflate energy prices.

The MGL hiked retail CNG prices by Rs 2/kg across the Mumbai Metropolitan Region (MMR), citing turbulence in global energy markets triggered by the ongoing conflict in West Asia. This hike will hit nearly 4.8 lakh autorickshaws, around 1.5 lakh taxis, and over five lakh private vehicles dependent on CNG across Mumbai, Thane and Navi Mumbai.

Fuel Expenditure

The Mumbai Rickshawmen’s Union (MRU) claimed that the increase has pushed up fuel expenditure from Rs 17.14/km to Rs 18.17/km, significantly raising the daily operational burden on drivers already struggling with rising maintenance and household expenses.

Accordingly, the MRU sought a fare revision of Re 1/km for autorickshaws and Rs 2/km for taxis to offset the additional fuel burden. “The latest CNG hike has brought fresh distress for drivers who are barely surviving. Running costs have increased sharply and fares must be revised accordingly,” a union representative said.

However, not all unions were in agreement with this stand. Swabhiman Taxi-Rickshaw Union (STRU) President K.K. Tiwari and Akhil Maharashtra Kamgar-Karmachari Sangh (AMKKS) President Gaurishankar Singh tread cautiously, warning that another fare revision could backfire and alienate commuters already hit by inflation.

“Cab fares were increased only last year. The government is unlikely to approve another hike so soon, especially when ordinary citizens are already burdened by rising prices,” Tiwari told ‘The Perfect Voice’.

He contended that the Rs 2/kg increase in CNG would translate into an additional burden of roughly Rs 8/day for an autorickshaw driver, which they could absorb for the time being. “If we insist on higher fares now, commuters may simply shift to app-based aggregators like Ola and Uber,” he cautioned.

Singh said a joint panel comprising officials from the Brihanmumbai Municipal Corporation (BMC), Regional Transport Office (RTO), Traffic Police and transport unions would examine the impact of the fuel hike and assess other economic and operational factors before taking any decision on fare revision.

The revised CNG rates - Rs 82/kg to Rs 84/kg - directly affecting nearly 12.8 lakh CNG-powered vehicles across the MMR and the increase of around Rs 3/litre in petrol and diesel prices, further depressed household budgets with concerns of triggering fresh inflation.

The rapid developments unfolded barely days after Prime Minister Narendra Modi appealed for austerity and frugality in public and private expenditure amid uncertain global conditions.

However, ordinary citizens are now grappling with higher transportation costs, rising fuel bills and escalating prices of daily essentials - even as airlines prepare to somewhat benefit from lower taxes on jet fuel.

Naidu pats Fadnavis

Maharashtra’s decision to slash VAT on ATF drew praise from Civil Aviation Minister K. Rammohan Naidu, who complimented Chief Minister Devendra Fadnavis for the timely intervention.

The appreciation came even as some other states, including Tamil Nadu and Delhi, have reportedly raised duties on jet fuel. Naidu noted that state-level VAT on ATF constitutes a major component of airline operating expenses, and Maharashtra’s decision would bring relief to the aviation industry at a critical juncture.

Highlighting Maharashtra’s soaring strides in aviation, the union minister pointed out that the state’s 16 operational airports collectively handle nearly 75 million passengers annually.

Naidu said the cut in VAT on ATF would help airlines manage operational costs more effectively and prevent sharp spikes in airfares despite rising international fuel pressures.

“I hope that the few states where the Congress continues to be in power - Karnataka, Kerala and Telangana will also look into this (ATF) issue and take up the challenge of undertaking pro-people measures.”

Piyush Goyal, Union Minister, Commerce