Man­u­fac­tur­ing

India Today - - COVER STORY | JOBS -

SIZE $311.6 bil­lion (2016-17) CON­TRI­BU­TION TO GDP 17% TO­TAL JOBS >30 mil­lion CHAL­LENGES

In­dia is go­ing through a tran­si­tion from a pre­dom­i­nantly cash-based econ­omy to a for­mal econ­omy. This will cause some pain, but there are no quick-fix so­lu­tions.

Jobs are be­com­ing in­ter­con­nected, so the for­tunes of one sec­tor are de­pen­dent on other sec­tors. For ex­am­ple, bank­ing and fi­nan­cial ser­vices—be it in­dus­trial or con­sumer fi­nance or gen­eral in­sur­ance—are re­lated to man­u­fac­tur­ing. There are also a lot of af­ter-sales ser­vice and re­pair jobs re­lated to man­u­fac­tur­ing. The ser­vices in­dus­try can­not grow with­out growth tak­ing place in man­u­fac­tur­ing.

With de­mand for growth in the IT ser­vices sec­tor hav­ing ta­pered off, we need to look at new av­enues of growth. The IT sec­tor is not go­ing to be a big job cre­ator any more.

WHAT NEEDS TO BE DONE

A fo­cus on in­fra­struc­ture and con­struc­tion will cre­ate man­u­fac­tur­ing op­por­tu­ni­ties. How­ever, it is im­pos­si­ble to cre­ate a large num­ber of jobs in the short term.

If the gov­ern­ment wants to cre­ate jobs in the long term, it should take on a mas­sive in­fra­struc­ture build­ing pro­gramme. The re­cent rail­way foot­bridge tragedy in Mum­bai points to the kind of in­fra­struc­ture de­vel­op­ment that needs to be un­der­taken on a war foot­ing.

You can’t re­sist tech­nol­ogy—it is bet­ter to in­crease its adop­tion. In the case of car com­pa­nies, tech­nol­ogy has not re­duced em­ploy­ment. When a prod­uct be­comes bet­ter in terms of cost and qual­ity, sales in­crease, creat­ing more jobs. At Maruti Suzuki, we have in­tro­duced a lot of tech­nol­ogy but have not re­duced man­power.

R.C. Bhar­gava Chair­man, Maruti Suzuki

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