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Last updated: 16 Aug, 2016  

Employee.9.Thmb.jpg Job creation: Herculean task ahead

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Bikky Khosla | 16 Aug, 2016
Unemployment rate rose to 3.8 percent of the total estimated workforce of 48 crore in 2015-16. India created 1.35 lakh new employments in 2015, while the figure was 4.21 lakh in 2014. These statistics sound worrisome. For some time now, there has been a lot of talk on India's demographic dividend -- more than 50 percent of our population is under 25 years of age -- but if the pace of job creation continues at this pace, this army of youth will instead become a liability. Manufacturing, export and MSME -- these are the three key sectors which I think must be pushed with vigor if we want to change this situation.

Ever since the NDA government came to power, job creation, especially in the manufacturing and core sectors, has remained its priority. A number of steps, including several initiatives on land reform, skill development and labor reform, have been taken. But a lot has yet to be done -- not enough jobs are getting created. There are an array of barriers, including poor power and logistics infrastructure, high administrative burden, high interest rates, etc. that are making our manufacturers uncompetitive. In this scenario, it is imperative to have a well thought-out manufacturing-led job creation strategy in place to fire up the country’s jobs market.

Experts view that decline in exports for a prolonged period of 18 consecutive months -- before turning positive in June, but falling again in July -- played a key role in poor employment generation. This argument sounds logical. Official figures show that number of jobs created across eight core sectors -- textiles, leather, metal, automobile, gems & jewelery, transport, IT/BPO and handloom and powerloom  -- went down by more than two-thirds in the calendar year 2015 in comparison with the year 2013. Most of the aforesaid sectors are export-oriented, and this clearly implies that healthy external trade is a must for job creation.

Finally, there is not an iota of doubt that MSMEs can play a game changing role in employment generation. This sector is India's second largest job provider after agriculture, employing more than 100 million people across diverse sectors. It has a share of 45 percent in the country’s manufacturing output growth and contributes 40 percent to exports. MSMEs, besides boosting the economy, can also play a key role in promoting rural industrialization and social inclusiveness. In the recent past, the sector has seen a number of interventions, but challenges abound still. I hope the upcoming MSME policy will address this issue.

I invite your opinions.
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interest rates
k.vijayalayan | Mon Aug 22 08:57:45 2016
Dear sir, the interest rates for business in the rest of world is 4% and in India is 13.5% . manufacturers,business man are affected by high interest rates.

Unemployment: Democratic Developing Country's Biggest challenge
Milan Mehta | Thu Aug 18 12:01:49 2016
Bikky, You have raised a very valid and pertinent point of concern. The Statistics are well compiled. However the root cause of unemployment is the large uneducated growing population,combined with the fact that Modernisation has led to mechanisation of so many operations that existing jobs are also getting closed. Unlike China we being democratic country cannot put curb by bringing 1 family 1 child policy. I have talked to consultants who now clearly prove that Robots are cheaper than humans in long term basis ! Wheels have replaced Palkhis. Fans have replaced the people fanning manually. Airplanes( who now courier the parcels ) have replaced Messengers, Fax / Emails have replaced letters being sent by couriers ( who employ courier boys ), Computers combined with smartphones have replaced / reduced team of Marketers, Accountants, Administrators. Modern Machines have replaced so many Farm labourers. The best long term way to generate more jobs is the Skill development Mission. Secondly, Govt. should support / incentivise all those industries which are labour oriented, including Hand made Textiles, Oils, Handicraft, etc.. If very prompt decisive action is not taken soon, not a single political party at centre can stop the rate of unemployment in India.

Indian Exports
Bert Mendelsohn | Wed Aug 17 05:47:43 2016
Dear Bikky It is no wonder India is suffering form lack of exports. I have been trying to contact sellers of some 8 products to the value of USD $360M. I have spent over 2 weeks sending out information to over 60 suppliers, and have had 8 responses, so if someone like me, who is trying to do business with India gets that sort of reception, what future is there for India competing for export orders? What we now have to do is employ an agent to find our sourcing requirements, as it is felt that with the not so new Government and its policies starting to bear fruitful opportunities, we need to have someone on the ground to dig out the sleepy companies that could be exporters and are to lazy to do so. Regards Bert Mendelsohn

Rise in Unemployment
Rizwan | Wed Aug 17 04:34:48 2016
Ever since the NDA government came to power, job creation possibilities have certainly shrunk. Government should rethink and re-plan their strategy. They certainly need to work at grass root level. I would still say UPA did far better job in upliftment of Economy ..

Narayan Avhale | Wed Aug 17 03:26:23 2016
There are many reason not to increase the employment as under.. 1. Using the updated technology all over the industries effecting less man power requirement with higher productivity. 2. Some of the factories are using robot for many critical areas hence reducing high man power in this sector. 3. The concept of manpower utilization has been tremendously changed than earlier. 4. All the industries are using the improvement activities such as kaizan, 5S, Why why analysis causing it to utilise the manpower properly. 5. The fear of unemployment. 6. Cheap import substitute from China. 7. Industries are not taking any risk to invest in high precise manufacturing & machinery investment.

Job Creation viz. Employment
R S Mani 9341620703 | Wed Aug 17 01:23:15 2016
Agriculture, Cottage Industries, Small Scale Industries, large scale Industries, Infrastructure Development, Housing Development and Services Sector are core thrust areas in which our Govt. spend more money and time for its development. Each Minister is responsible for this purpose.

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