- By the end of this decade, India will have around 800 million people between 20 and 65 years of age or what can be loosely considered to be the potential labour force.
- To accommodate it, it becomes even more important to have high quality jobs
Why creating high quality jobs in industry and services sector are important:-
- India has a great demographic opportunity because it will have a growing population in an ageing world.
- It also risks social turmoil in case there are not enough jobs for the growing labour force.
- The failure to absorb the growing working-age population as well as the millions leaving farming has important consequences for social stability.
- The inability to manage the jobs challenge will in effect mean that governments will be forced to use fiscal tools to buy social peace be it consumption subsidies or unemployment dole or loan waivers.
- Good quality jobs are created by high productivity firms, so this agenda is critically about how firms are created, how firms grow, and how firms achieve high productivity.
- The tax-GDP ratio(at present 11-13%) will increase and provide a ground for better implementation of the various schemes.
- High quality jobs comes with the entrepreneur qualities and may act as a source for the job creation which will relive the pressure from the government.
- New technology will be available with high quality jobs, which will further provide a room for the development and transfer of knowledge,etc.
- To combat the issue of brain drain as most of qualified technocrats prefer going to western countries.
- With the emergence of high quality jobs in the country will also attract foreign investors and thus helping in schemes like “Make In India”.
- High quality jobs would indirectly benefit the social infrastructure of the country be it health,education etc.
- High quality job will provide social security unlike informal sector jobs.
What can be done?
- In addition to ‘easing conditions for doing business’, government policies must promote the formation of strong clusters and networks.
- These two requirements flexibility for enterprises and an adequate safety net for citizens can be met with better social security systems. The design of the systems should also facilitate citizens to learn new skills so that they remain employable when jobs change.
- The constraints in the manufacturing sector are generic issues.
- Taxation, both direct and indirect
- labour laws
- entry and exit problems
- administrative laws and complicated procedures
- credit problems, both cost and availability
- lack of skills
- deterrents against urbanisation and formalization
- infrastructure constraints.
How Make in India addresses these constraints:-
- The key thrust of the programme would be on cutting down in delays in manufacturing projects clearance, develop
- adequate infrastructure and make it easier for companies to do business in India.
- The national progamme aims at time-bound project clearances through a single online portal
- The objective of the mega programme is to ensure that manufacturing sector which contributes around 15% of the country’s Gross Domestic Product is increased to 25% in next few years.
- It also deals with the construction permit delays by directing the big municipal corporations to ease the process involved.
- In this initiative the rules of IPR are also strengthened, that rules out the possibilities of delay involved with the patents.
- Employment intensive sectors for example leather, textile and food processing industries have been given the centre stage.
- Simplifications of rules involving clearance involving labour laws and environment.
- Transfer of assets in case of sick industries via NIMZ i.e. National Investment and Manufacturing Zone.
- Govt’s initiative of Skill India will also play a pivotal role in the success of Make In India by providing the much needed skill force.
- Issues involving trade union and labour laws should also be dealt with at most care
By introduction of new reforms in policies along with a positive economic atmosphere, it has created a fertile ground for businesses to thrive in India.
How did it hamper?
- About 52% of India’s sedimentary basins are unappraised, with the last appraisal taking place 25 years ago.Because of lack of this there is more production pressure on already existing oil fields.
- Many potential oil producing fields are untapped.
- It is difficult to ascertain the energy resources in the country
- Private companies have to spend extra resources for exploration
- Expansion of new resources like shale gas has been slow.
- Non uniform pockets of development in energy sector as entire country data is not available
- Industry watchers have blamed non-availability of data as one of the reasons for global explorers shying away from participating in the auction of oil and gas blocks under the New Exploration Licensing Policy (NELP) regime.
- Acquiring geological data would enable in understanding the geology, hydrocarbon prospectivity and carving out of new exploration blocks. This has become important when production of oil and gas from domestic fields is rather stagnant.
However government has been taking active measures to look into this issue:-
- National data repository is expected to come up to provide the required database
- Open acreage licensing policy will help open up 2.8 million square kilometres of sedimentary basins for exploration
More research needs to be promoted to improve the energy security inturn the economic prosperity of the nation.