Job Growth-Manufacturing

Examine the linkages between job growth and manufacturing sector, and discuss how should India reform the manufacturing sector to generate more jobs. (200 Words)

Over 300 million young Indians are set to enter our labour force by 2025. With an average age of 29, India‘s population is in the middle of a demographic boom. For creating employment opportunities for such a large number of people, growth in manufacturing sector is often cited as the way forward, as it was seen in the case of China.
In the Liberalisation era of post-1990s, we have not been able to create enough jobs in the manufacturing sector. In fact, we can say that there has been jobless growth in this sector. So, out major initiatives such as ‘Make in India’ should not only focus on the large capital intensive industries & increase in GDP, but also small and medium scale enterprises (SMEs) which will provide the bulk of the jobs. SME‘s are labour intensive, they can ensure inclusive growth of people everywhere in the country. Poor physical connectivity, regulatory barriers, and weak institutional capacities are major barriers in this sector
Steps to improve:
  1. Reforming labour laws will encourage employers to keep more workers in formal roles with work-linked wages and social security benefits
  2. MSMEs being greater contributor of jobs in manufacturing sector, they should be given more financial support through initiatives like MUDRA Bank and also technical support leading to large scale of production
  3. Creation of strong networks of manufacturing units & integrating them with global supply chain is required to make use of export-led growth in manufacturing, especially in textile and apparel industry.
  4. Expediting GST and providing timely credit to MSMEs will provide further impetus.
  5. Finally, focus should be on skill development [National Policy for Skill Development and Entrepreneurship 2015] as an effective roadmap to promote entrepreneurship. Skill India should focus on not just increase in number of  ITIs but increase participation of industries in curriculum design, providing staff for ITIs and provide practical training. This will reduce gap in demand and supply of labour



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