Prof (Dr) Raj Kumar Singh
One of the major issue of Bharat is rising population and subsequent rising unemployment. The unemployment is a very crucial issue challenging the very fast changing demographic and economic landscape of nation . Bharat being the most populous nation is having full of diversity and with diverse workforce. The recent fluctuation in the unemployment rate has badly effected the rate of growth and development of the nation including the Human Development Index and overall Happiness Index. As per the Employment Report 2024 for Bharat which has been prepared by the International Labour Organisation (ILO) the National Working Population has increased upto 64 percent in 2021 which is expected to grow by 65 percent in the year 2036. However the percent of youth which is around 60 percent of the overall population has declined in the year 2022 by 37 percent in the economic activities of the nation , most probably due to the lack of required skill sets.
As per the latest data from the Centre for Monitoring Indian Economy in the June 2024 the unemployment rate in Bharat stood at 9.2 percent. This situation is going to aggravate day by day. The only hope in this direction is to concentrate on the manufacturing sector. In the MSME manufacturing sector specially the Micro and Small Enterprises which are around 630 Lakhs in number. They create around 50 percent of the employment and export generation. However the biggest issue with the Micro and Small Enterprises are its sustainability. Every year many thousands of Micro and Small Enterprises shut down in country due to the lack of proper infrastructure support, improper government policies, excess bureaucracy and lack of proper technology and knowledge of modern management. Although till 2020 as per the World Bank, Ease of Doing Business Index the Bharat position was 63 out of 190 countries (After 2020 World Bank stopped releasing Ease of Doing Business index probably due to the undue pressure from China). Even if we take that data as a base still more than 60 Countries are ahead of Bharat which is a very serious concern for the fifth largest economy of the world which is heading towards becoming the third largest economy within a decade. This clearly implies the lack of economic and social inclusion which is a major hurdle in the way of Bharat to become a Developed Nation.
There is a lot of expectation from the central government to act in this direction if we are really interested to become the manufacturing hub of the world and compete with China. To increase in the demand of the market more relaxation in the Income Tax should be given so that money may flow in the market and purchasing power of the consumer may be promoted which will indirectly benefit the manufacturing sector and government also through the increase in the GST and other Tax Collections. The FDI in Manufacturing Sector can be increased only through the promotion of Infrastructure Facility. Liberal Industrial Policy, Less Bureaucracy, Rationality of GST and other Tax structure and above all making a proper availability of Highly and Semi Skilled Human Resource compatible with the requirement of Industry 4.0 . Although it’s a good sign that 13.5 crore people have emerged from extreme poverty, however providing of regular employment to them is a big challenge which is only possible through the growth of the Manufacturing Sector. Through the provision of drinking water, housing, sanitation, and healthcare facilities, we have overcome the challenges of the good living standards.
Today, manufacturing sector in Bharat contributes around $0.5 trillion, approximately 17% of the GDP. The Bharat should target strive for is $4.5 trillion, equivalent to 22% of the GDP, by 2047. As we are observing that Indian Economy is booming post pandemic and a huge consumer base has generated. People need more Consumer Goods including FMCG and Consumer Durables. Real issue is that our manufacturing base is not that strong and due to its nature of more capital intensiveness we have to import major goods, its accessories and raw materials. This situation adversely affects our import bills. Bharat need to have self sufficiency in this direction to address the trade deficit especially in the critical sectors.
To generate the employment and revive the manufacturing sector Bharat should focus more on Pharmaceuticals , Textiles , Chemicals , Energy , Infrastructure and Automation sector. These industries need must upskill for their scaleup. The export policies need to be updated as per the newer global order. Bharat employment oriented growth strategy should be based on 4D’s approach i.e. Demographics, Decarbonisation, Decoupling and Deglobalisation for the Green Economic Development like Solar Energy Green Hydrogen Mission and to understand the localise needs of the nations all around the world. This will generate more employment and provide significant opportunities for the growth of the manufacturing sector.
By- Prof (Dr) Raj Kumar Singh
(Author Is An Expert of Entrepreneurship)
