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