On the eve of what could be one of the most consequential Union Budgets in recent memory, veteran Congress leader and Thiruvananthapuram MP Shashi Tharoor delivered a message that cuts to the heart of India’s economic paradox: “Growth without jobs is not progress—it’s illusion.”
Speaking ahead of the February 1, 2026 Budget presentation, Tharoor didn’t mince words. While the Economic Survey touts robust GDP expansion and fiscal discipline, he stressed that unless this translates into meaningful employment—especially for India’s restless youth—the numbers are hollow. And for states like Kerala, which faces high expectations and upcoming electoral battles, the stakes couldn’t be higher.
This isn’t just political rhetoric. It’s a direct challenge to the narrative of “jobless growth”—a term that’s haunted India’s development story for over a decade. As the nation celebrates macroeconomic stability, millions of educated young people remain trapped in underemployment or forced into informal, low-wage work.
Table of Contents
- Tharoor’s Core Message: Jobs Over Statistics
- Why Jobless Growth Is India’s Achilles’ Heel
- Kerala in the Spotlight: Budget Demands and Election Pressure
- What the Economic Survey Says About Employment
- What Budget 2026 Must Deliver to Avoid Jobless Growth
- Conclusion: Beyond GDP—A Call for Inclusive Prosperity
- Sources
Tharoor’s Core Message: Jobs Over Statistics
Tharoor’s focus is laser-sharp: “We’re told the economy is growing at 7%+. But my constituents aren’t feeling it. They’re asking, ‘Where are the jobs?’” He emphasized that the Union Budget must move beyond capital expenditure on infrastructure—which, while important, doesn’t always create immediate, large-scale employment—and instead prioritize sectors with high labor absorption capacity [[1]].
He specifically called for targeted support for MSMEs, the services sector, and green energy initiatives—all of which have proven potential to generate quality jobs quickly. “You can’t tell a 24-year-old engineering graduate to wait for a metro line to be built in 2030. They need opportunities now,” he remarked.
Why Jobless Growth Is India’s Achilles’ Heel
India’s jobless growth dilemma stems from a structural mismatch:
- Automation & Capital Intensity: Modern manufacturing and even IT services are becoming increasingly automated, reducing labor needs per unit of output.
- Skills Gap: Millions graduate each year, but many lack industry-relevant skills, leaving them unemployable in high-growth sectors [[2]].
- Informal Dominance: Over 90% of India’s workforce is in the informal sector, with no social security, low wages, and zero career progression [[3]].
The result? A growing disconnect between headline GDP figures and lived economic reality. This fuels disillusionment, especially among the youth—a demographic that powered India’s digital revolution but now feels economically stranded.
Kerala in the Spotlight: Budget Demands and Election Pressure
Tharoor’s comments carry extra weight given Kerala’s unique position. The state consistently ranks high on human development indices but struggles with limited industrialization and high outward migration for work. Ahead of local body elections, Keralites are demanding concrete central support:
- Enhanced funding for the Kerala Fibre Optic Network (KFON) to boost digital entrepreneurship.
- Special packages for coastal infrastructure and blue economy projects.
- Relaxation of environmental clearances for eco-sensitive but job-creating industries.
“Kerala isn’t asking for handouts,” Tharoor clarified. “We’re asking for partnership—investments that leverage our human capital and create dignified work within the state.”
What the Economic Survey Says About Employment
The Economic Survey 2025–26 acknowledges employment as a “critical frontier” but remains cautiously optimistic, citing rising e-Shram registrations and gig economy growth [[4]]. However, critics argue these metrics mask precariousness. Gig work often lacks benefits, stability, or upward mobility—hardly the “quality jobs” promised in policy documents.
Notably, the Survey highlights a recovery in labor force participation, especially among women. But without formal job creation, this could simply mean more distress-driven entry into low-productivity work.
What Budget 2026 Must Deliver to Avoid Jobless Growth
To truly address Tharoor’s concerns, Budget 2026 should go beyond rhetoric and include:
- A National Employment Mission: Modeled on MGNREGA but focused on urban youth and skilled work, with public-private partnerships.
- Tax Incentives for Job Creators: Direct benefits for companies that hire first-time workers or apprentices in sunrise sectors like AI, renewables, and advanced manufacturing.
- State-Specific Development Packages: Tailored support for states like Kerala, Tamil Nadu, and Punjab that have high human capital but need industrial catalysts.
- Revamped Skill India Programs: Aligning training with real-time market demands, not outdated curricula [[5]].
As the International Labour Organization (ILO) notes, “Sustainable development requires decent work for all” [[6]]. Without it, even the strongest GDP figures ring hollow.
Conclusion: Beyond GDP—A Call for Inclusive Prosperity
Shashi Tharoor’s intervention is a timely reminder that economics isn’t just about balance sheets—it’s about people. The Union Budget 2026 has a historic opportunity to pivot from celebrating jobless growth to engineering inclusive prosperity.
For Kerala, for India’s youth, and for the soul of the nation’s development model, the question isn’t “How fast is the economy growing?” but “Who is it growing for?” The answer will define not just this budget, but India’s trajectory for the rest of the decade.
For deeper insights into how state economies can drive national employment, explore our analysis on [INTERNAL_LINK:state-led-job-creation-models-in-india].
Sources
- [[1]] Times of India. (2026). ‘Looking to see what benefits Kerala gets’: Tharoor ahead of Budget presentation. https://timesofindia.indiatimes.com/india/looking-to-see-what-benefits-kerala-gets-tharoor-ahead-of-budget-presentation/articleshow/127832264.cms
- [[2]] World Bank. (2025). India Development Report: Bridging the Skills Gap.
- [[3]] Periodic Labour Force Survey (PLFS), Ministry of Statistics and Programme Implementation, Government of India.
- [[4]] Economic Survey 2025–26, Ministry of Finance, Government of India.
- [[5]] National Skill Development Corporation (NSDC). (2025). Annual Report.
- [[6]] International Labour Organization (ILO). (2025). World Employment and Social Outlook. https://www.ilo.org