ppt by deepika and divisha

Can industrial and service sector solve the problem of unemployment in India?

By,Deepika & DivishaEco Hons, 2nd yearHansraj College

Contents

INTRODUCTION

GROWTH OF MANUFACTURING SECTOR IN INDIA

GROWTH OF SERVICES SECTOR IN INDIA

UNEMPLOYMENT

EMPLOYMENT & UNEMPLOYMENT SCENARIO IN INDIA

ROLE OF GOVERNMENT IN ENHANCING EMPLOYMENT GROWTH

COMPARING INDIA AND CHINA’S GROWTH IN GDP & EMPLOYMENT

CONCLUSION

ECONOMIST’S VIEW

INTRODUCTION

India’s GDP of USD 691 bn makes it the 10th largest economy in the world and 4th largest in terms of purchasing power parity.

One of the fastest growing economies in the world - growing at over 8 % p.a for the last 3 years.

It is a open secret that all of the countries of the world are struggling with the problem of unemployment.

INTRODUCTION



UNEMPLOYMENT




CONCLUSION

ECONOMIST’S VIEW

UNEMPLOYMENT

Unemployment can be defined as a state of worklessness for a man fit and willing to work at the prevailing wage rate.

Major cause of Unemployment in India:

The industrial & service sector is growing undoubtedly, but their growths aren’t in par with the growth in Indian population.

INTRODUCTION



UNEMPLOYMENT




CONCLUSION

ECONOMIST’S VIEW


Year Employment

(%)

1999-2000 0.98

2004-2005 2.89

Growth in Employment:

Labour force scenario in India:

Source: NSSO Survey

Sector/Year

Agriculture Manufacturing Services

1999-2000

59.8 12.1 22.7

2004-2005

58.4 11.7 23.4

Sectoral Contribution in Employment:

But, the sector hasalso absorbed almosthalf of the increment in the workforce

But, the sector hasabsorbed 5.5 mn shareof the incremental workforce.

But, the sector hasabsorbed 16.8 mn share of the incremental workforce.

As per the data for the year 2004-05: only about 9 percent of the total workforce is in the

organized sector (all public sector establishments and all non-agricultural establishments in private sector with 10 or more workers)

the remaining 91 percent are in the unorganized sector, self-employed, or employed as casual wage labourers

Features of unemployment

The incidence of unemployment is much higher in urban areas than in rural areas

Unemployment rates for women are higher than those for men:

The incidence of unemployment among the educated is much higher than the overall unemployment.

There is greater unemployment in agricultural sector than in industrial and other major sectors.

Source: Labour Bureau of the Government of India

INTRODUCTION



UNEMPLOYMENT




CONCLUSION

ECONOMIST’S VIEW

Growth of Manufacturing sector in India

India has emerged as one of the world's top ten countries in industrial production.

Industry sectors’ contribution to real GDP in period 1992/7 was 7.3% but fell to 4.3% from period 1997/02 but again picked up after 2002/3 and contributed almost 9.2% in the period 2002/7.

In terms of employment in this sector, the share has seen a marginal decline from 12.1 per cent to 11.7 per cent during 1999-2000 to 2004-05.

INTRODUCTION



UNEMPLOYMENT




CONCLUSION

ECONOMIST’S VIEW

Growth of Service sector in India

India ranks fifteenth in the services output. In the five years between 1992-93 and 1996-97 the

services contributed just about half of the total growth in GDP. In the subsequent five years to 2001-02, the sector’s contribution rose sharply to 68% and has remained at a high 64% in the six years since 2001-02.

In terms of employment in this sector, it increased its share in the employment from 22.7 % to 23.4% in 1999-2000 to 2004-05.

INTRODUCTION



UNEMPLOYMENT




CONCLUSION

ECONOMIST’S VIEW

Role of government

Make labour laws more conducive to the present scenario

enhance efficiency in land acquisition matters and in allotment of land to the corporate sector for their investment projects.

Work upon improving the efficient functioning between various ministries.

Government should try to minimize the role of corruption which directly affects our cost of services and products.

INTRODUCTION



UNEMPLOYMENT



CONCLUSION

ECONOMIST’S VIEW


COMPARING INDIA AND CHINA

Growth in GDP in India is led by the IT industry while in china it is led by the manufacturing industry.

In India, the share of services in GDP has risen but with no significant increase in the share in employment. As a corollary, the employment share of service sector in China has increased steadily since 1978. As a result, China’s service sector has absorbed relatively much larger labour force than India. In India, the decline in employment has happened due to an increase in labour productivity over a period of time.

INTRODUCTION

UNEMPLOYMENT






CONCLUSION

Measures to enhance employment in industrial sector:

Enhance the production capacity of firms. Labour union must work with managements in the way

the efficiency of the organizations get improved & the organization does not become uncompetitive.

Industries should be established on the barren and waste land instead of fertile land.

as southern states and western states are performing well on the front of creating opportunities for better industrial climate, other regions should try to emulate so that greater empt opportunities are created in those areas also.

Measures to enhance employment in service sector

• Compulsory education to all so that the future is educated, should be the priority of the government that alone can serve the problem of generating employment in this sector to a large extent.

• Also focusing on skill development will enhance productivity per worker.

• Though agriculture sector’s contribution to GDP has remained stagnant, this sector consists of almost over half of our working population, thus this sector should not be ignored by the government as the present scenario is.

• As neglect of the development needs of this sector are likely to make India's employment and livelihood issues even more challenging.

Can industrial and service sector solve the problem of unemployment in India????

Hence, we conclude that yes, industrial and service sector can definitely solve the issue of unemployment in India to a large extent by effectively implementing measures discussed before and not forgetting to take

agriculture sector in consideration.

Thank you

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ppt by deepika and divisha