Accelerating growth and expanding employment opportunities are the goals of economic policy. To provide productive employment for the continuing increase in the labour force is an integral part of our objective of inclusive growth. In a broad sense, there is no conflict between the two objectives of growth and employment. Over time, the two go together. Higher growth leads to enhanced employment. However, the question that arises is at what rate? Employment elasticity with respect to output measures the percentage increase in employment due to a percentage increase in output. The overall employment elasticity of an economy is the combined effect of the sectoral employment elasticities and the composition of output. It is also true that as an economy grows, employment elasticity may fall which is in part a reflection of the improved productivity of labour. Improved productivity of labour is necessary in order to sustain higher real wages. In this context, it is important to note that while the unemployment rate according to the CDS measure was only 7 per cent in 1999 – 2000, the percentage of population below the poverty line was 26 per cent. Thus an overall employment policy needs to address not only the quantity or the number of people employed but also the quality of employment in terms of real wages of the employed.