Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | Six steps to job creation -Santosh Mehrotra    </title>
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-The Hindu

It is crucial to align policy across sectors and upgrade the country&rsquo;s social infrastructure

In
India&rsquo;s highly segmented labour market, one can still discern at least 
three demographic groups that are in urgent need of jobs: a growing 
number of better..."/>
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-The Hindu

It is crucial to align policy across sectors and upgrade the country&rsquo;s social infrastructure

In
India&rsquo;s highly segmented labour market, one can still discern at least 
three demographic groups that are in urgent need of jobs: a growing 
number of better..." />
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                            <div align="justify">-The Hindu<br /><br /><em>It is crucial to align policy across sectors and upgrade the country&rsquo;s social infrastructure<br /></em><br />InIndia&rsquo;s highly segmented labour market, one can still discern at least three demographic groups that are in urgent need of jobs: a growing number of better educated youth; uneducated agricultural workers who wish to leave agricultural distress behind; and young women, who too arebetter educated than ever before. India is indeed the fastest growing large economy in the world; yet with investment low, credit offtake low,capacity utilisation in industry low, agricultural growth low, plant load factor low, it is hardly surprising that job growth is low as well.<br /><br />Althoughgrowth is relatively high (though slowing for last several quarters), it is the pattern of growth that is the problem. Among many dimensions of this problem is the fact that in the quarter century since economic reforms began, it is not manufacturing that has been the leading sector driving growth. Manufacturing should drive productivity in the whole economy. Services cannot, as services by definition &lsquo;service&rsquo; the distribution of produced goods.<br /><br />So what can policy-makers do to revive job growth, other than invest more in infrastructure, which this government has been attempting to do especially for last 18 months or so, in both rural and urban India?<br /><br /><em>Industrial, trade policy<br /></em><br />First,an industrial and trade policy is needed. The Department of Industrial Policy and Promotion (DIPP) is finally preparing an industrial policy. For 20 years after economic reforms began in 1991 there was no National Manufacturing Policy, and the Policy, when it came in 2011, was not evenimplemented. By the time the 12th Plan (with the first mention of Industrial Policy since 1991) became public, the UPA government had goneinto policy paralysis. Not only did tariffs come down too fast in the 1990s, but what has damaged manufacturing is inverted duty structures.<br /><br />Whilethe DIPP is preparing the industrial policy document, it is essential that trade policy is consistent with such an industrial policy. Otherwise the two may work at cross purposes and undermine each other&rsquo;s objectives. This is precisely what has happened over many years. Excessive imports have been decimating Indian manufacturing. An invertedduty structure has the following features: higher duty on intermediate goods compared to final finished goods, with the latter often enjoying concessional customs duty. As a result, domestic manufacturers face hightariffs since the last 12-15 years, leading to higher raw material costat home, emanating from the unfavourable inverted duty structure. This was pointed out by FICCI way back in 2014 for aluminium, steel, chemicals, capital goods, electronics. This has prevented many manufacturing sectors from growing since economic reforms began. This must be corrected.<br /><br />The automobiles sector in India faced no inverted duty structure, and has thrived. India has become in the last decade one of the largest producers of vehicles of several kinds in the world now. Electronics faced an inverted duty structure, but the FinanceMinister has made changes, and slowly electronics manufacturing has grown.<br /><br />Second, special packages are needed for labour-intensive industries to create jobs. There are a number of labour intensive manufacturing sectors in India such as food processing, leather and footwear, wood manufacturers and furniture, textiles and apparel and garments. The apparel and garments sector received a package from the Government of India roughly a year back. The other labour intensive sectors have been ignored. The nature of the package will need to be individually designed for each sector defined as quickly as possible.<br /><br /><em>Cluster development<br /></em><br />Three,there should be cluster development to support job creation in micro, small and medium enterprises (MSMEs). Most of the unorganised sector employment is in MSMEs, which tend to be concentrated in specific geographic locations. There are 1,350 modern industry clusters in India and an additional 4,000 traditional product manufacturing clusters, likehandloom, handicraft and other traditional single product group clusters. There is a cluster development programme of the Ministry of MSMEs, which is poorly funded and could be better designed as well.<br /><br />Butthe Ministry&rsquo;s total annual budget for all programmes, including cluster development, is grossly inadequate. Spread over 6,000 clusters, it becomes even more inadequate to transform MSMEs located in clusters.<br /><br />Fourth,align urban development with manufacturing clusters to create jobs. TheMinistry of Urban Development (MoUD) has a programme called AMRUT (AtalMission for Rejuvenation and Urban Transformation) aimed at improving infrastructure for small towns. Infrastructure investment by the government always creates many jobs. But the programme does not take into account whether the infrastructure investment under it is taking place in towns which have clusters of unorganised sector economic activities. Hence an engagement between the Urban Development and MSME Ministries is necessary to ensure that this is happening. It will attract more investment to industrial clusters, which is where most non-agricultural jobs are.<br /><br />Fifth, focus of women. Girls are losing out in jobs, or those with increasing education can&rsquo;t find them, despite having gotten higher levels of education in the last 10 years. Secondary enrolment in the country rose from 58% to 85% in a matter of five years (2010-2015), with gender parity. Skilling close to clusters (rather than standalone vocational training providers), which is where the jobs are, is likely to be more successful. The problem with skillingprogrammes has been low placement after skilling is complete. The availability of jobs close to where the skilling is conducted will also enhance the demand for skilling.<br /><br />And sixth, public investments inhealth, education, police and judiciary can create many government jobs. Public investment in the health sector has remained even in the last three years at 1.15% of GDP, despite the creation of the national health policy at the beginning of 2017. The policy indicates that expenditure on health will rise to 2.5% of GDP only by 2025. Given the state of health and nutrition of the population, it is critical that public expenditure on health is increased faster and not as late as 2025. In the absence of greater public expenditure, the private sector in health keeps expanding, which only raises the household costs on health without necessarily improving health outcomes, because the private sector does not spend on preventive and public health measures. But the private sector prefers to set up hospitals to cure people after they have become sick rather than prevent them from becoming unhealthy in the first place. Preventive and public health have always been in allcountries the responsibility of government. More government expenditurein health means more jobs in government and better health outcomes.<br /><br />Please <a href="http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true" title="http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true">click here</a> to read more. <br /></div>                                                           
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    <br><a href="http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true" class="re" target="_blank">The Hindu, 14 October, 2017, http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true</a><div class="clear"></div>
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    <h1 class="cat-box-title">Six steps to job creation -Santosh Mehrotra</h1>
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                            <div align="justify">-The Hindu<br /><br /><em>It is crucial to align policy across sectors and upgrade the country&rsquo;s social infrastructure<br /></em><br />InIndia&rsquo;s highly segmented labour market, one can still discern at least three demographic groups that are in urgent need of jobs: a growing number of better educated youth; uneducated agricultural workers who wish to leave agricultural distress behind; and young women, who too arebetter educated than ever before. India is indeed the fastest growing large economy in the world; yet with investment low, credit offtake low,capacity utilisation in industry low, agricultural growth low, plant load factor low, it is hardly surprising that job growth is low as well.<br /><br />Althoughgrowth is relatively high (though slowing for last several quarters), it is the pattern of growth that is the problem. Among many dimensions of this problem is the fact that in the quarter century since economic reforms began, it is not manufacturing that has been the leading sector driving growth. Manufacturing should drive productivity in the whole economy. Services cannot, as services by definition &lsquo;service&rsquo; the distribution of produced goods.<br /><br />So what can policy-makers do to revive job growth, other than invest more in infrastructure, which this government has been attempting to do especially for last 18 months or so, in both rural and urban India?<br /><br /><em>Industrial, trade policy<br /></em><br />First,an industrial and trade policy is needed. The Department of Industrial Policy and Promotion (DIPP) is finally preparing an industrial policy. For 20 years after economic reforms began in 1991 there was no National Manufacturing Policy, and the Policy, when it came in 2011, was not evenimplemented. By the time the 12th Plan (with the first mention of Industrial Policy since 1991) became public, the UPA government had goneinto policy paralysis. Not only did tariffs come down too fast in the 1990s, but what has damaged manufacturing is inverted duty structures.<br /><br />Whilethe DIPP is preparing the industrial policy document, it is essential that trade policy is consistent with such an industrial policy. Otherwise the two may work at cross purposes and undermine each other&rsquo;s objectives. This is precisely what has happened over many years. Excessive imports have been decimating Indian manufacturing. An invertedduty structure has the following features: higher duty on intermediate goods compared to final finished goods, with the latter often enjoying concessional customs duty. As a result, domestic manufacturers face hightariffs since the last 12-15 years, leading to higher raw material costat home, emanating from the unfavourable inverted duty structure. This was pointed out by FICCI way back in 2014 for aluminium, steel, chemicals, capital goods, electronics. This has prevented many manufacturing sectors from growing since economic reforms began. This must be corrected.<br /><br />The automobiles sector in India faced no inverted duty structure, and has thrived. India has become in the last decade one of the largest producers of vehicles of several kinds in the world now. Electronics faced an inverted duty structure, but the FinanceMinister has made changes, and slowly electronics manufacturing has grown.<br /><br />Second, special packages are needed for labour-intensive industries to create jobs. There are a number of labour intensive manufacturing sectors in India such as food processing, leather and footwear, wood manufacturers and furniture, textiles and apparel and garments. The apparel and garments sector received a package from the Government of India roughly a year back. The other labour intensive sectors have been ignored. The nature of the package will need to be individually designed for each sector defined as quickly as possible.<br /><br /><em>Cluster development<br /></em><br />Three,there should be cluster development to support job creation in micro, small and medium enterprises (MSMEs). Most of the unorganised sector employment is in MSMEs, which tend to be concentrated in specific geographic locations. There are 1,350 modern industry clusters in India and an additional 4,000 traditional product manufacturing clusters, likehandloom, handicraft and other traditional single product group clusters. There is a cluster development programme of the Ministry of MSMEs, which is poorly funded and could be better designed as well.<br /><br />Butthe Ministry&rsquo;s total annual budget for all programmes, including cluster development, is grossly inadequate. Spread over 6,000 clusters, it becomes even more inadequate to transform MSMEs located in clusters.<br /><br />Fourth,align urban development with manufacturing clusters to create jobs. TheMinistry of Urban Development (MoUD) has a programme called AMRUT (AtalMission for Rejuvenation and Urban Transformation) aimed at improving infrastructure for small towns. Infrastructure investment by the government always creates many jobs. But the programme does not take into account whether the infrastructure investment under it is taking place in towns which have clusters of unorganised sector economic activities. Hence an engagement between the Urban Development and MSME Ministries is necessary to ensure that this is happening. It will attract more investment to industrial clusters, which is where most non-agricultural jobs are.<br /><br />Fifth, focus of women. Girls are losing out in jobs, or those with increasing education can&rsquo;t find them, despite having gotten higher levels of education in the last 10 years. Secondary enrolment in the country rose from 58% to 85% in a matter of five years (2010-2015), with gender parity. Skilling close to clusters (rather than standalone vocational training providers), which is where the jobs are, is likely to be more successful. The problem with skillingprogrammes has been low placement after skilling is complete. The availability of jobs close to where the skilling is conducted will also enhance the demand for skilling.<br /><br />And sixth, public investments inhealth, education, police and judiciary can create many government jobs. Public investment in the health sector has remained even in the last three years at 1.15% of GDP, despite the creation of the national health policy at the beginning of 2017. The policy indicates that expenditure on health will rise to 2.5% of GDP only by 2025. Given the state of health and nutrition of the population, it is critical that public expenditure on health is increased faster and not as late as 2025. In the absence of greater public expenditure, the private sector in health keeps expanding, which only raises the household costs on health without necessarily improving health outcomes, because the private sector does not spend on preventive and public health measures. But the private sector prefers to set up hospitals to cure people after they have become sick rather than prevent them from becoming unhealthy in the first place. Preventive and public health have always been in allcountries the responsibility of government. More government expenditurein health means more jobs in government and better health outcomes.<br /><br />Please <a href="http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true" title="http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true">click here</a> to read more. <br /></div>                                                           
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    <br><a href="http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true" class="re" target="_blank">The Hindu, 14 October, 2017, http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true</a><div class="clear"></div>
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It is crucial to align policy across sectors and upgrade the country&rsquo;s social infrastructure

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number of better..."/>
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It is crucial to align policy across sectors and upgrade the country&rsquo;s social infrastructure

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    <h1 class="cat-box-title">Six steps to job creation -Santosh Mehrotra</h1>
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		 Published on</span><span class="text-date"> Oct 14, 2017</span>
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                            <div align="justify">-The Hindu<br /><br /><em>It is crucial to align policy across sectors and upgrade the country&rsquo;s social infrastructure<br /></em><br />InIndia&rsquo;s highly segmented labour market, one can still discern at least three demographic groups that are in urgent need of jobs: a growing number of better educated youth; uneducated agricultural workers who wish to leave agricultural distress behind; and young women, who too arebetter educated than ever before. India is indeed the fastest growing large economy in the world; yet with investment low, credit offtake low,capacity utilisation in industry low, agricultural growth low, plant load factor low, it is hardly surprising that job growth is low as well.<br /><br />Althoughgrowth is relatively high (though slowing for last several quarters), it is the pattern of growth that is the problem. Among many dimensions of this problem is the fact that in the quarter century since economic reforms began, it is not manufacturing that has been the leading sector driving growth. Manufacturing should drive productivity in the whole economy. Services cannot, as services by definition &lsquo;service&rsquo; the distribution of produced goods.<br /><br />So what can policy-makers do to revive job growth, other than invest more in infrastructure, which this government has been attempting to do especially for last 18 months or so, in both rural and urban India?<br /><br /><em>Industrial, trade policy<br /></em><br />First,an industrial and trade policy is needed. The Department of Industrial Policy and Promotion (DIPP) is finally preparing an industrial policy. For 20 years after economic reforms began in 1991 there was no National Manufacturing Policy, and the Policy, when it came in 2011, was not evenimplemented. By the time the 12th Plan (with the first mention of Industrial Policy since 1991) became public, the UPA government had goneinto policy paralysis. Not only did tariffs come down too fast in the 1990s, but what has damaged manufacturing is inverted duty structures.<br /><br />Whilethe DIPP is preparing the industrial policy document, it is essential that trade policy is consistent with such an industrial policy. Otherwise the two may work at cross purposes and undermine each other&rsquo;s objectives. This is precisely what has happened over many years. Excessive imports have been decimating Indian manufacturing. An invertedduty structure has the following features: higher duty on intermediate goods compared to final finished goods, with the latter often enjoying concessional customs duty. As a result, domestic manufacturers face hightariffs since the last 12-15 years, leading to higher raw material costat home, emanating from the unfavourable inverted duty structure. This was pointed out by FICCI way back in 2014 for aluminium, steel, chemicals, capital goods, electronics. This has prevented many manufacturing sectors from growing since economic reforms began. This must be corrected.<br /><br />The automobiles sector in India faced no inverted duty structure, and has thrived. India has become in the last decade one of the largest producers of vehicles of several kinds in the world now. Electronics faced an inverted duty structure, but the FinanceMinister has made changes, and slowly electronics manufacturing has grown.<br /><br />Second, special packages are needed for labour-intensive industries to create jobs. There are a number of labour intensive manufacturing sectors in India such as food processing, leather and footwear, wood manufacturers and furniture, textiles and apparel and garments. The apparel and garments sector received a package from the Government of India roughly a year back. The other labour intensive sectors have been ignored. The nature of the package will need to be individually designed for each sector defined as quickly as possible.<br /><br /><em>Cluster development<br /></em><br />Three,there should be cluster development to support job creation in micro, small and medium enterprises (MSMEs). Most of the unorganised sector employment is in MSMEs, which tend to be concentrated in specific geographic locations. There are 1,350 modern industry clusters in India and an additional 4,000 traditional product manufacturing clusters, likehandloom, handicraft and other traditional single product group clusters. There is a cluster development programme of the Ministry of MSMEs, which is poorly funded and could be better designed as well.<br /><br />Butthe Ministry&rsquo;s total annual budget for all programmes, including cluster development, is grossly inadequate. Spread over 6,000 clusters, it becomes even more inadequate to transform MSMEs located in clusters.<br /><br />Fourth,align urban development with manufacturing clusters to create jobs. TheMinistry of Urban Development (MoUD) has a programme called AMRUT (AtalMission for Rejuvenation and Urban Transformation) aimed at improving infrastructure for small towns. Infrastructure investment by the government always creates many jobs. But the programme does not take into account whether the infrastructure investment under it is taking place in towns which have clusters of unorganised sector economic activities. Hence an engagement between the Urban Development and MSME Ministries is necessary to ensure that this is happening. It will attract more investment to industrial clusters, which is where most non-agricultural jobs are.<br /><br />Fifth, focus of women. Girls are losing out in jobs, or those with increasing education can&rsquo;t find them, despite having gotten higher levels of education in the last 10 years. Secondary enrolment in the country rose from 58% to 85% in a matter of five years (2010-2015), with gender parity. Skilling close to clusters (rather than standalone vocational training providers), which is where the jobs are, is likely to be more successful. The problem with skillingprogrammes has been low placement after skilling is complete. The availability of jobs close to where the skilling is conducted will also enhance the demand for skilling.<br /><br />And sixth, public investments inhealth, education, police and judiciary can create many government jobs. Public investment in the health sector has remained even in the last three years at 1.15% of GDP, despite the creation of the national health policy at the beginning of 2017. The policy indicates that expenditure on health will rise to 2.5% of GDP only by 2025. Given the state of health and nutrition of the population, it is critical that public expenditure on health is increased faster and not as late as 2025. In the absence of greater public expenditure, the private sector in health keeps expanding, which only raises the household costs on health without necessarily improving health outcomes, because the private sector does not spend on preventive and public health measures. But the private sector prefers to set up hospitals to cure people after they have become sick rather than prevent them from becoming unhealthy in the first place. Preventive and public health have always been in allcountries the responsibility of government. More government expenditurein health means more jobs in government and better health outcomes.<br /><br />Please <a href="http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true" title="http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true">click here</a> to read more. <br /></div>                                                           
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    <br><a href="http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true" class="re" target="_blank">The Hindu, 14 October, 2017, http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true</a><div class="clear"></div>
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Six steps to job creation -Santosh Mehrotra

Published on Oct 14, 2017   Modified on Oct 14, 2017

-The Hindu It is crucial to align policy across sectors and upgrade the country’s social infrastructure InIndia’s highly segmented labour market, one can still discern at least three demographic groups that are in urgent need of jobs: a growing number of better educated youth; uneducated agricultural workers who wish to leave agricultural distress behind; and young women, who too arebetter educated than ever before. India is indeed the fastest growing large economy in the world; yet with investment low, credit offtake low,capacity utilisation in industry low, agricultural growth low, plant load factor low, it is hardly surprising that job growth is low as well. Althoughgrowth is relatively high (though slowing for last several quarters), it is the pattern of growth that is the problem. Among many dimensions of this problem is the fact that in the quarter century since economic reforms began, it is not manufacturing that has been the leading sector driving growth. Manufacturing should drive productivity in the whole economy. Services cannot, as services by definition ‘service’ the distribution of produced goods. So what can policy-makers do to revive job growth, other than invest more in infrastructure, which this government has been attempting to do especially for last 18 months or so, in both rural and urban India? Industrial, trade policy First,an industrial and trade policy is needed. The Department of Industrial Policy and Promotion (DIPP) is finally preparing an industrial policy. For 20 years after economic reforms began in 1991 there was no National Manufacturing Policy, and the Policy, when it came in 2011, was not evenimplemented. By the time the 12th Plan (with the first mention of Industrial Policy since 1991) became public, the UPA government had goneinto policy paralysis. Not only did tariffs come down too fast in the 1990s, but what has damaged manufacturing is inverted duty structures. Whilethe DIPP is preparing the industrial policy document, it is essential that trade policy is consistent with such an industrial policy. Otherwise the two may work at cross purposes and undermine each other’s objectives. This is precisely what has happened over many years. Excessive imports have been decimating Indian manufacturing. An invertedduty structure has the following features: higher duty on intermediate goods compared to final finished goods, with the latter often enjoying concessional customs duty. As a result, domestic manufacturers face hightariffs since the last 12-15 years, leading to higher raw material costat home, emanating from the unfavourable inverted duty structure. This was pointed out by FICCI way back in 2014 for aluminium, steel, chemicals, capital goods, electronics. This has prevented many manufacturing sectors from growing since economic reforms began. This must be corrected. The automobiles sector in India faced no inverted duty structure, and has thrived. India has become in the last decade one of the largest producers of vehicles of several kinds in the world now. Electronics faced an inverted duty structure, but the FinanceMinister has made changes, and slowly electronics manufacturing has grown. Second, special packages are needed for labour-intensive industries to create jobs. There are a number of labour intensive manufacturing sectors in India such as food processing, leather and footwear, wood manufacturers and furniture, textiles and apparel and garments. The apparel and garments sector received a package from the Government of India roughly a year back. The other labour intensive sectors have been ignored. The nature of the package will need to be individually designed for each sector defined as quickly as possible. Cluster development Three,there should be cluster development to support job creation in micro, small and medium enterprises (MSMEs). Most of the unorganised sector employment is in MSMEs, which tend to be concentrated in specific geographic locations. There are 1,350 modern industry clusters in India and an additional 4,000 traditional product manufacturing clusters, likehandloom, handicraft and other traditional single product group clusters. There is a cluster development programme of the Ministry of MSMEs, which is poorly funded and could be better designed as well. Butthe Ministry’s total annual budget for all programmes, including cluster development, is grossly inadequate. Spread over 6,000 clusters, it becomes even more inadequate to transform MSMEs located in clusters. Fourth,align urban development with manufacturing clusters to create jobs. TheMinistry of Urban Development (MoUD) has a programme called AMRUT (AtalMission for Rejuvenation and Urban Transformation) aimed at improving infrastructure for small towns. Infrastructure investment by the government always creates many jobs. But the programme does not take into account whether the infrastructure investment under it is taking place in towns which have clusters of unorganised sector economic activities. Hence an engagement between the Urban Development and MSME Ministries is necessary to ensure that this is happening. It will attract more investment to industrial clusters, which is where most non-agricultural jobs are. Fifth, focus of women. Girls are losing out in jobs, or those with increasing education can’t find them, despite having gotten higher levels of education in the last 10 years. Secondary enrolment in the country rose from 58% to 85% in a matter of five years (2010-2015), with gender parity. Skilling close to clusters (rather than standalone vocational training providers), which is where the jobs are, is likely to be more successful. The problem with skillingprogrammes has been low placement after skilling is complete. The availability of jobs close to where the skilling is conducted will also enhance the demand for skilling. And sixth, public investments inhealth, education, police and judiciary can create many government jobs. Public investment in the health sector has remained even in the last three years at 1.15% of GDP, despite the creation of the national health policy at the beginning of 2017. The policy indicates that expenditure on health will rise to 2.5% of GDP only by 2025. Given the state of health and nutrition of the population, it is critical that public expenditure on health is increased faster and not as late as 2025. In the absence of greater public expenditure, the private sector in health keeps expanding, which only raises the household costs on health without necessarily improving health outcomes, because the private sector does not spend on preventive and public health measures. But the private sector prefers to set up hospitals to cure people after they have become sick rather than prevent them from becoming unhealthy in the first place. Preventive and public health have always been in allcountries the responsibility of government. More government expenditurein health means more jobs in government and better health outcomes. Please click here to read more.

The Hindu, 14 October, 2017, http://www.thehindu.com/opinion/lead/six-steps-to-job-creation/article19856022.ece?homepage=true

Tagged with: Manufacturing Sector Manufacturing Sector growth industrial growth Atal Mission for Rejuvenation and Urban Transformation (AMRUT) micro small and medium enterprises (msmes) Small and Medium Enterprises msmes Job Creation Employment

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