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Creation of Massive Job Opportunities

 “21st century India's power resides with the youth. Our youth is full of energy and represents the true power of India - the true confidence of the country”: PM Modi

India’s youth have the ability to transform the nation. With their active involvement, the path to development and prosperity for all is laid. In order to ensure their participation, it is pertinent that opportunities for employment are provided to them in tune with their skills and capabilities.

There has been massive creation of job opportunities with investment into and the pace of execution of infrastructure projects like making roads, laying down rail lines, setting up power generation including solar parks and transmission lines at an all-time high.

Similarly, there is significant growth in sales of commercial vehicles and passenger vehicles, creating jobs. Consider the sale of commercial vehicles. Net of exports, approximately 7.5 lakh vehicles were sold in FY18 in India. Considering a replacement rate of 25%, this still translates to 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. To this if one added the sales of cars, 3 wheelers and tractors around 30 lakh plus jobs are created in this sector alone yearly. The FDI inflows, which are at an all-time high, too is translating into manufacturing and job creation.

From just 2 mobile manufacturing units in 2014 we have grown to 120. With the massive expansion of the Indian smartphone market, expansion in app-based aggregators and other mobile app related companies, a host of job opportunities have been created.

Today, India has emerged as one of the top hubs of start-ups. App-based aggregators are flourishing in India across food, logistics, e-commerce, mobility solutions and many more such sectors.

The potential for the tourism sector to create jobs is immense. Foreign tourist arrivals in India grew by 50% in the last 4 years. Foreign exchange earnings from tourism also grew from US $18 billion to US $ 27 billion, a growth of 50% in four years. Domestic tourism has also grown. Today, India is seeing a historic boom in the aviation sector. Last year, over 10 crore people took a flight. Through UDAN scheme, we have put many places, particularly Tier-II and III cities on the aviation map. Will this not create jobs and opportunities across the board? According to an analysis by the Ministry of Tourism, the tourism sector alone has created 14.62 million job opportunities in the country during last four years. A private study in 2018 also analysed travel and tourism sectorand said it was growing at 16% per annum and adding 30-40 lakh jobs every year.

Self-employment is also a critical source of employment generation in India. More than 15 crore Mudra loans worth more than 7 lakh crore have been disbursed to small entrepreneurs and over 4 crore first time borrowers have started their business. An analysis by the MSME Ministry says that 10 crore jobs have been created in the MSME sector in the last 4 years.

Job creation among professional service providers such as chartered accountants, lawyers and doctors is also robust, as per data from their respective regulatory bodies. Income Tax (IT) data provides an indication on the number of new self-employed professionals. As per data available, an average of 150,000 tax paying professionals were added annually between assessment year (AY) 2014-15 and AY 2017-18. One can further assume that most of these professional tax payers hire support staff, likely to be below the threshold of twenty employees which then makes social security registration mandatory. Assuming each professional hires some support staff, this indicates a few lakh jobs being created annually.

A study has highlighted that increased government spending, rise of independent work and entrepreneurship have boosted incremental jobs for 20-26 million people during 2014-17.

NASSCOM Reportin January 2018 said 1.4 crore new jobs have been created between 2014-17 in four core sectors: Automotive, IT-BPM, Retail and Textiles; 65 lakh of these were in the retail sector alone.

We now have extensive data available on people contributing to social security benefits through the Employee Provident Fund Organisation (EPFO), the Employee State Insurance Corporation (ESIC) and the National Pension Fund (NPS). This is not survey data where a few thousand people are asked and the results then extrapolated. In this data, money is actually being deducted for the various social security schemes.

Between September 2017 and November 2018, a total of 73,50,786 net new subscribers were added to the EPFO, an average of 4.9 lakh subscribers each month. ESIC tells a similar story as well. On average, between September 2017 and November 2018, approximately 10 lakh-11 lakh subscribers were added each month. 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 crores annually. A number of independent studies have shown salary hike of at least 10 per cent, indicating a buoyant economy.

Going by the record of various states on employment, one can see that the job opportunities are arising all across the board. As per the West Bengal government, they created 68 lakh jobs between 2012-16 and 9 lakh jobs in the last year. In Karnataka 53 lakh jobs were created in the last 5 years. The Tamil Nadu government is confident of its investor summit helping create over 10 lakh jobs for the people of the state.

Apart from the private and personal level investment, public sector spending in sectors like civil aviation, railways, roads, electricity and broadband connectivity have multiplier effect on overall economy especially job opportunities. Infrastructure creation has been happening at a breathtaking pace under the Modi government. This also creates more direct and indirect jobs.

Certainly, youth being the largest section of job seekers, would have benefitted from the job opportunities created in the rapidly growing economy showcasing youth-led development.

 

March 27, 2019