Friday, March 26, 2021

Unemployment in India, a big challenge

Unemployment in India, a big challenge

Considering our population growth rate of 2%, every month approximately 22 lakh youths enter into the job market; 8 lakh in Urban and 14 lakh in Rural. Taking the half of the numbers (one person of the couple demands job), still the number will be huge, in search of jobs. And those who are already entered into the scene, there are millions jobless, and millions are underemployed. The jobs in organise sector is only 10% of the total jobs, therefore, all of them have to depend mainly on unorganised sector. And the unemployable youths, because of their poor education or not having skills in demand by the organised sector; they are mostly absorbed in the market as workers, labourers, building construction workers, hawkers, drivers, chayvala, pakodavala, panipurovala, etc. They have no option but to crowd the streets for their survival. To cross the International poverty line for the family, one person has to earn ₹700/day/family. Before we overcome the problems of employment and underemployment of the existing workforce, new job seekers are entering into the market everyday, as population pressure doesn’t give any room for rest to the executives. Unemployment or underemployment is one of the reasons of malnutrition of the Human Resource. Instead of mass production strategy, where investments in billions create jobs in hundreds; India has to opt for production by masses, by promotion of small and medium sectors where small investments create more jobs. Big infrastructure projects can be developed by the giants but small trades and businesses can fill the bellies of millions.

Wealthy people in India are earning more from the gambling of satta bazar or daba trading than from their real net worth of manufacturing or service sectors. Infrastructure development like the developed world is essential for creating a base on which new entrepreneurs can invest and create jobs. But simultaneously the workforce is to be created through our education and training system that can be absorbed by the market. Each job increases the purchase power of the employee that moves the growth engine forward. Instead of Growth rate driven by the progress of the rich, let it moves like the “Prayer Wheel” of Tibetan Temple, where thousands of hands can spine it forward so that “Happiness Index of India” grow faster.

Look at Dubai, what was it in 2004 and what is it today? In a span of 12-15 years, it has created more than 2000 towers and we are unable to do 2-3-4 in declared ventures. They are adding number of towers everyday. The success of Dubai is written by Indians as 30% of it’s population is Indian and they are mostly in building construction, trading and service sectors. There is Muslim ruler with forward and open policy and the entrepreneurs and workers of all religions are growing happily. Their airlines, their infrastructure, their attitudes, their policies, etc, all tuned with the growth strategy of the UAE. Tourists are coming in thousands even during summer months of 50 degree temperature. What makes them successful? The “Ease of Growing”. It attracts the “talents” of the world. It’s central location make their residents comfortable with trading and traveling. It was Tax Free zone, where the entrepreneurs neither  bothered about the inspectors nor about their books of account. They can trade in any country with any currencies. Their only concentration was on their investments/business and returns. Now UAE has introduced 5% VAT following our model of income generation, it may have some small affect initially but unless they tax more in future, the growth of UAE will continue.

Why can’t we do the same in India? I asked to one of the entrepreneurs. No ease of doing business in India, he replied. Each permission not only takes time but many rules, regulations, procedures are obstructive to growth. The politicians, their folders, the police, the regulators, etc, act as authorities, not as facilitators to the business. He was narrating some of the examples of the victims of the system. With improving our rank of ease of doing business in Delhi and Mumbai and ranking States for the same, we are trying to build the environment. But when regulation like GST, etc, comes, some regulators talk authority that creates fear amongst the entrepreneurs who then try to escape and find their place in Dubai or Tehran.

Unemployment is one of the biggest challenges before the Nation. The governments are trying their level best to create jobs with better growth rate but everybody has to contribute in building the environment of “ease of growing” in the country.

1 February 2018


Post a Comment

Powered by Blogger.