Modi's Make In India Hits Problems, Fewer Factory Jobs

BENGALURU: Make in India is an international marketing campaign started by PM Narendra Modi on 25^th September 2014.  The main objective of the job was to encourage job creation, enforcement to secondary and tertiary sector. It is to initiate the focus on the heavy industries and public enterprises to generate employment, reports Business Standard

Two distracting trends have come forward as PM Modi pushes forward his venture of Make in India plan and factory output. Firstly a decline is noticed in the employment graph of the formal, organized sector which is believed to be the prime staging ground for Modi. During the financial year 2013-14 about 400,000 people lost their job.

As for the second problem, the first problem gave rise to it. With the downfall of the employment rate the existing workers are being squeezed to get more output from fewer employees.

During 2012-13 there were 222, 120 operational industries units in India and the people engaged in factories were 217, 554 units in 2011 -2012. As per the annual survey of industries the people engaged in factories decreased from 13.43 million to 12.95 million that is a drop of 3.6 per cent was noticed.

Where the Prime Minister wants the manufacturing to be at least 25 percent of the GDP, such a decline is not at all welcome.

A working paper released by Indian Council for Research On International Economic Relations said, “The organized sector, in particular the household sector, accounts for a disproportionately large share of employment but a very small share of value added in manufacturing.” The number of companies developed throughout the decade is 73 percent, while the number of people appointed into the industries is only 63 per cent.

However the study shows that so much of blame cannot be put on the labour regulations the record is only maintained for the permanent workers not the part time ones. Hiring the contractual based workers is not being recorded.

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