Jobs – A Promise Made and Delivered by the Modi Government

Published By : Admin | March 19, 2019 | 14:02 IST

New India’s new economy is the home of opportunities. The fastest growing major economy in the world is creating opportunities in employment and entrepreneurship for the youth. There are a number of reports and indicators that show healthy job creation.

Research Reports

  • An analysis by World Data lab suggests that the number of people below poverty line in India is now less than 5 crore. For people to be taken out of poverty, they have to be engaged in certain economic activities.
  • A study by McKinsey Global Institute titled “India’s Labour Market- A New Emphasis on Gainful Employment” has highlighted the fact that increased government spending, rise of independent work and entrepreneurship have led to incremental job growth for 20-26 million people during 2014-17.
  • According to a NASSCOM Report in January 2018, around 1.4 crore new jobs have been created between 2014-17 in four core sectors includingautomotive, IT-BPM, retail and textiles. Around 65 lakh of these jobs were created in the retail sector alone.

Vehicle sales indicate job creation

  • Net of exports, approximately 7.5 lakh vehicles were sold in FY2018 in India. Considering a replacement rate of 25%, this means 5.6 lakh new commercial vehicles added to the transport sector. Assuming a capacity of employment for each commercial vehicle at 2, we can infer that 11 lakh jobs are annual added in this sector alone.Ifthe sales of cars, 3 wheelers and tractors are factored in addition to this,over 30 lakh jobsare created in this sector alone yearly.

 

Manufacturing and investment driving employment

  • The number of mobile and parts manufacturing units increased from 2 in 2014, to 268 in 2018. These units have also opened fresh avenues for direct employment for lakhs of youth. Such a massive expansion also has an impact via indirect job creation.
  • Foreign direct investment is flowing in to India like never before. FDI inflows that stood at US$ 36.05 billion in 2013-14, jumped to US$ 61.96 billion in 2017-18. For the first time in 20 years, in 2018, India beat China in FDI inflows. Such massive investment boosts growth and jobs.

Tourism

  • Tourism sector is known for its ability to create direct and indirect jobs. As foreign tourist arrivals grew by 50% in the last 4 years and foreign exchange earnings from tourism grew from US$ 18 billion to US$ 27 billion, the heightened economic activity has provided more jobs to the hospitality and tourism sector.

According to a report by the Ministry of Tourism, the sector has created 14.62 million (1.46 crore) job opportunities in the country during last four years.

  • Domestic air passengers crossed 120 million in 2018. As UDAN added over 30 operational airports to India’s aviation map, these airports also created jobs and livelihood opportunities in tier II and tier III cities.
  • According to KPMG, the travel and tourism sector grew at 16% per annum adding 30-40 lakh jobs every year.

Self-employment

  • MUDRA aims to provide uncollateralized credit to entrepreneurs up to Rs. 10 lakh. More than 15 crore MUDRA loans worth more than Rs. 7 lakh crore have been disbursed to small entrepreneurs; over 4 crore first time borrowers have started their business using this credit. They would have not only found an employment for themselves but also created more jobs for others.
  • A survey by CII has revealed that MSME sector added about 1.49 crore jobs each year in the last four years. This means nearly 6 crore jobs added during the Modi government’s tenure in the MSME sector.

Formal Jobs

  • As per the data provided by the Department of Income Tax, an average of 1.5 lakh tax paying professionals were added annually between assessment year (AY) 2014-15 and AY 2017-18. Assuming at least some of these professionals hire some support staff, lakhs of fresh jobs are being created annually by these professionals.
  • Between September 2017 and November 2018, a total of 73.50 lakh net new subscribers were added to the Employees’ Provident Fund Organisation database. Similarly, between September 2017 and November 2018, approximately 10 lakh subscribers were added each month to Employees’ State Insurance Corporation database. Even if we consider a 50% overlap with EPFO data, it yields about 10 lakh workers being added to the formal workforce per month, or 1.2 crore

Further, various states have put out claims on the number of jobs created, including Karnataka which claimed to create 53 lakh jobs during 2013-18 and West Bengal which claimed to create 68 lakh jobs during 2012-16 and 9 lakh jobs in 2017. Is it possible that there is job creation happening in various states but not in the country?

As investment in infrastructure projects like roads, railways, and power plants touches an all-time high, with the pace of building rural roads, railway lines and highwaysalmost doubling, more people would be employed to build such infrastructure.

India has emerged as one of the top hubs of start-ups and there is an ecosystem of mobile apps and aggregators created across sectors like food, logistics, consumables, retail etc. This has propelled job creation.

It is evident that, across sectors, the tenure of the Modi government has seen the proliferation of anumber of fresh avenues to engage human capital on a sustainable basis.

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"Building Atmanirbhar Bharat Through Comprehensive Job Creation"
February 24, 2024

One of the most effective pathways of aspirational and practical self-actualization for citizens of a nation is employment generation at scale and expanse. Prime Minister Narendra Modi’s government has been cognizant of this need and has moved the needle comprehensively so that job creation today is happening across the spectrum: in the formal and informal sectors, through direct and indirect opportunities, in conventional and unconventional fields, and via self-employment and the opening up of multiple avenues for gigs, start-ups and novel entrepreneurship.


Government Initiatives
If on the one hand, Bharat is seeing the exponential growth in the number of start-ups and a conducive environment has made it one that has the largest number of unicorns, on the other hand a record number of Mudra loans sanctioned have fuelled unprecedented women-led growth, and the Agniveer scheme that aims to recruit youth into the Armed services has seen adoption in record numbers. According to a Harvard University research, India is among the top quartile of fastest-growing countries till 2029 and is undergoing a historic transition towards becoming a more formalized and technologically advanced, digitally evolved nation.


In the three years between 2017-18 and 2020-21, total employment increased by 8.4 crore which is a manifestation of several key factors such as demonetisation, rationalisation of taxes, the introduction of the Goods and Services Tax (GST), digital inclusivity and digitisation of financial transactions, inclusion of skill development and vocational training in the National Education Policy, increasing the number of Industrial Training Institutes (ITIs), a fillip to the hitherto marginalized segments such as rural and tribal populace, and effective incentivization for a highly labour dominant unorganized sector. An example is how PM Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi), has benefitted more than 56 lakh rehri or street vendors from June 2020 to November 2023.


Formalisation
Immense positive impact can be seen in the nation’s formal employment sector. India is the 5th largest economy in the world with 1.12 crore net additional employment created between 2015 to 2018. This is a result of the confluence of progressive, pro-industry policy decisions, leveraging of advancements in technology, reforms to ease business investment, and a focus on skilling. An example of how this translates on the ground is that with the PM MUDRA Yojana More than 15 crore people have been employed in the MSME sector out of which 3.4 crore are women.


In the IT Industry alone, around 20 lakh people have been employed between 2013-14 and 2021-22. Indirectly, about 6.24 crore jobs were created between 2014 and 2019 in India’s digital economy. When it comes to a boost in employment generation across sectors, let’s take the example of tourism – a revamped and increasingly attractive tourism and hospitality industry led to 1.9 crore indirect jobs being created in the tourism sector between 2017 and 2020. The overhaul in the hospitality sector has led to the creation of many such jobs directly, and indirectly; India is among the most visited countries in the world and has been experiencing a growing influx of tourists. This has led to business incentivization and a boost to local artisans, transport providers, and hotels and restaurants within the larger hospitality service industry. In Air transport alone, for every Rs. 100/- invested in the sector, 610 indirect jobs are generated.


Infromal Sectors
The winds of change can also be seen in the disruptive as well as informal sectors. Providing security and stability to the unconventional health and wellness, since 2014, about 5.65 lakh practitioners have been provided employment under Ayurveda, Yoga, Naturopathy, Unani, and Homoeopathy (AYUSH). The introduction of several new reforms, an increase in FDI, which have further helped in improving the ‘ease of doing business’ along with low data costs, improvised processes and ready adoption have created a thriving new ecosystem for employment – the gig and platform economy. Gig-economy jobs grew year-on-year by 13% and over 29.20 crore people have registered so far on the E-Shram portal. From 2016 to May 2022, ‘Hunar Haat’ has created employment avenues for over 10.5 lakh artisans and talented Vishwakarmas.


The continuing chain of beneficiaries in the government’s Gati shakti model include processes that act as catalysts for indirect job creation in sectors such as transport, logistics, mobility, food, consumer goods and manufacturing products. Up to 2021-22, 53,696 km of roadways were created which generated 21.8 crore man-days of employment. As mentioned before, round 6 crore people employed in unorganized sector between 2017-18 and 2019-20 have benefited from the SVANidhi Yojana – making PM Modi’s vision of Sabka Saath, Sabka Vikas, Sabka Vishwas aur Sabka Prayas a quintessential facet of employment for all.


People-first policies such as the flagship program for equitable housing, the PM Awas has created 2.39 crore indirect jobs up to 2022. Another great example of the ripple effect of employment generation can be seen in the form of Production Linked Incentive (PLI) schemes which enable the expansion of existing industries into larger ones, while promoting the creation of new ones. As an example, 5 lakh incremental jobs have been created in the mobile manufacturing sector due to PLI. As per the Economic Survey 2023, PLI schemes are slated to create 60 lakh jobs. In addition, India’s fintech adoption rate of 87% as against the world average of 64% has enabled the creation of an ecosystem that is touching the lives and livelihoods of all – including the self-employed and small business owners.


To this end, Rozgar Melas that aim to provide 10 lakh jobs in less than two years, and that meld employment opportunities and unique talent have been a boon for the economy. Rozgar Mela is a key step towards the fulfilment of the commitment to accord the highest priority to employment generation in the country. On 12th February, 2024, PM Modi distributed more than 1 lakh appointment letters to newly inducted recruits and also lay the foundation stone of Phase I of the Integrated Complex “Karmayogi Bhavan” to promote collaboration and synergy amongst various pillars of Mission Karmayogi. “Rozgar Melas are playing a crucial role in enhancing the contribution of our Yuva Shakti in nation building”, said PM Modi. Rozgar Mela will be held at 47 locations across the country this year with recruitments taking place across central government departments and state governments/UTs supporting this initiative. These melas ascribe gainful opportunities to the youth, the Amrit Generation, and create pathways for their direct participation in national development. Similarly, under the Prime Ministers Employment Generation Programme (PMEGP), over 43.77 lakh people have got employment and the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has led to the placement of over 24.51 lakh candidates.


As policy making becomes efficient, so do its representative tools; more than 19.9 lakh people have been placed in jobs through employment exchanges between 2017-2022. The government has incessantly been taking many measures to tackle unemployment issues and stem the unemployment rate. The Amrit generation is benefitting from a multi-pronged approach; if on the one hand, Scheme of Fund for Regeneration of Traditional Industries (SFURTI), has benefitted around 2.94 lakh from 2014-15 to December 2022, on the other hand, over 1.80 lakh new job-creators and entrepreneurs are now operating under the Stand-Up India scheme.


New India – Naya Bharat – is one that thrives on a developed mindset with the aim of making the country Atmanirbhar, and a Vishwa Mitra – one the world leans on. As an example of this commitment, in the current financial year, Khadi has achieved a historic milestone by generating over 9.54 lakh new jobs. Be it our push towards renewable energy, creating a decarbonized energy sector which ranks India is 4th globally or the reduction of unemployment rate in rural areas, (decreased from 5.3% in 2017-18 to 2.4% in 2022-23) the commitment of PM Modi’s government to decisively mitigate unemployment stays foremost.


A spurt in the employment index is predicated on employment mobility to higher productivity jobs, rising job rates in secondary and tertiary sectors, promotion of women as economic catalysts and the increased formalisation of the unorganized, informal sector. PM Modi’s government has consistently come good on all the parameters which is the reason why milestone, upon milestone, Bharat’s journey towards becoming Atmanirbhar and the world’s third largest economy, is only a matter of time.