The progressive "Make in India" campaign by the Indian Government, to turn the country into a global manufacturing hub has become a topic of debate among the economists worldwide. The campaign aims at empowering the country's manufacturing industry through a set of fundamental changes.? As the drive gains momentum, speculations on how the job market will be impacted are also underway. There is a strong opinion building that India's attempt to accomplish East Asia style manufacturing growth depends largely on the employment generation and output.? Experts are taking different sides on the expected outcomes, but the air of optimism cannot be denied. "Make in India will create jobs" -- let's weigh the fact on merit. How will Make in India Campaign create Jobs? Increase in Investment will Drive the Growth The government's latest initiative has aroused positive sentiments in the minds of the industry professionals.
Union government is investing in various sectors that have been targeted in the campaign. The increase in investment will give a kick to the employment potential that lies in the sector. Professionals are expecting pretty robust job growth in the manufacturing industry for a protracted period of time. Labor Law Reforms will Boost Job Growth There are certain labor laws (e.g. Section 10 of Labor regulations Act) that lay down unnecessary obligations on manufacturing sector while hiring contract workforce. With the reform in such laws, the sector will open up and hire labor with more freedom, hence creating more job opportunities.
Domestic Companies Might Transmute into Global Brands The other aspect that the government has focused is the ease of doing business. India ranks 142 out 189 countries if we talk about ease of setting up a business. Existing laws and complicated procedures hinder the growth of the manufacturing sector. The introduction of new policies under this campaign will speed up the land acquisition and the clearance processes. Special Economic zones and a cell that will address the issues of the business entities in 72 hours are planned to be created in different parts of the country. This will project India as a favorable manufacturing destination, opening up the way for more investment.
This will promote human capital requirement and develop a host of employment opportunities. Growth & Employment in Other Sectors Investment in the manufacturing sector will also act as an elevator for the development of other sectors. With the establishment of new companies in the infrastructure and energy sector, a lot many job opportunities are expected, even in the service sector. The campaign surely has provided the kick that was needed for the growth of the manufacturing sector. A lot depends on the efficient implementation of the measures. The effect of these plans and schemes will be seen in the due course of time. The experts are predicting an aggressive growth in the employment generation if the execution takes place as planned by the policy makers.
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