Why job creation remains a pipe dream?
India is the youngest country and is expected to remain so over a few decades. With such an expanding workforce, it is true that India is sitting on a huge demographic dividend. To reap this dividend, programmes like Make in India have been launched which are, however yet to show up the desired results. So what is it that is pulling India back when it comes to job creation?
The strict labour laws apply to firms having more than 10 employees. Hence, companies try to remain small so as to escape regulations pertaining to routine inspections, worker's safety, working hours, PF contributions etc. Therefore they hire less and outsource other jobs in the form of contracts.
Next factor is of course the rising automation which eats away jobs like anything.
A NASSCOM report finds that only 25% of the graduates are employable. Therefore the quality of higher education sector in India leaves a lot to worry about. Mere expansion of IITs and other institutes of higher learning have proven to be counterproductive since we don't have enough of well paid and well-equipped faculty.
Looking forward we need to target sectors that have immense job creating potential like the startups, tourism sector, apparels, footwear industry etc. We need to give tax-breaks to Micro, small and Medium Enterprises (MSMEs) that are Kamdhenus of job creation.
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