What is the nature of the employment problem that India currently confronts? And what are the economic and social policies that could effectively address the problem? The core of the employment problem in India is that of the working poor and addressing this is also the most effective way of eliminating child labour and reducing gender inequality in the world of work. In principle, this can be addressed either by reducing the level of underemployment, increasing the real wage rate for casual labour or facilitating the transfer of poor self-employed persons and casual labourers to regular wage paid jobs. The priority must be to generate a steady process of labour transfer; ensuring that a substantial proportion of the newly created regular wage paid jobs are for low-skilled workers, which points to the need for a growth strategy oriented towards exports of manufactures.