Can start up India projects solve jobless growth
Day in and day out , Modi government has been claiming that India is now one of the fast growing economies in the world and cites several reports by international agencies in support of it’s claim. While the statistics are impressive, there is huge concern in the country, particularly amongst the youth and the underprivileged section of society that job opportunities have not increased for them and they are not part of growth story of India.
The gap in the disparity of income is steadily increasing and the economic and industrial growth are not generating jobs to the level of need. While the production figures and annual sale turnover of the enterprises in different sector have increased, the growth in employment level in them are showing declining trend. The production increase and profitability increase are happening due to factors of technology, automation and computerization, which mean that the number of hands needed become less.
This scenario is now the biggest challenge before the Modi government. It has to find some way to ensure that the growth in the economy would move in tandem with the employment generation at various levels.
Obviously, Prime Minister Modi is conscious of this under current of anxiety amongst the people.
Keeping this need in view, Modi government has launched schemes such as Start up India , Make in India, hoping that it would lead to build huge enthusiasm amongst the first generation entrepreneurs, promote many employment opportunities and lead to massive growth at the base level.
It has also taken special measures to develop skill amongst the people. But, such steps are not yielding the expected results and it does not look that positive results would happen too soon.
In a vast country like India with steady increase in population growth at alarming level, it is just not possible for the government and organized sector to generate adequate employment opportunities for the rapidly increasing youth population.
The only way is to promote large number of tiny and small scale enterprises which need not invest much in technology and automation and would generate employment opportunities in a big way. With Start Up India projects, thousands of such tiny and small scale enterprises are required to be promoted all over India, particularly in small towns and rural areas.
When large enterprises are set up , they are supposed to lead to the setting up of many ancillary and small scale industrial units and service oriented organisations around them, stroking chain of developments , industrial/economic activities and employment. But, this is not happening, as the need of such large enterprises are increasingly being met by import rather than from the domestic small and tiny scale units.
Obviously, there is lack of adequate level of skill amongst the small scale entrepreneurs to set up projects in tune with the global standards and the need of the large sector. However, it should be made possible for the small and tiny scale units set up under Start up India projects to meet such needs.
At the same time, it needs to be pointed out that several road blocks still exist for the tiny and small scale units , where the Start up India projects are expected to be set up to meet the needs. This is a serious issue that Modi government has to attend urgently.
The fact is that Modi government has largely played it’s role and the role of the state governments and local bodies are extremely important to ensure that Start Up India projects are facilitated to operate without hurdles. On the other hand, the level of nepotism and corruption in the government machinery at the state government level and local bodies really lead to delays and harassment of the small scale units.
The Start up India entrepreneurs should also introspect about their shortcomings and how to overcome the problems instead of complaining about the various external factors.
There is challenge and opportunities facing the Start up India projects and it remains to be seen whether youth of India would overcome the challenges and seize the opportunities to meet the expectations of the nation from the Start up India entrepreneurs.
N.S. Venkataraman
Nandini Consultancy Centre
www.nandinichemical.com
. more
The gap in the disparity of income is steadily increasing and the economic and industrial growth are not generating jobs to the level of need. While the production figures and annual sale turnover of the enterprises in different sector have increased, the growth in employment level in them are showing declining trend. The production increase and profitability increase are happening due to factors of technology, automation and computerization, which mean that the number of hands needed become less.
This scenario is now the biggest challenge before the Modi government. It has to find some way to ensure that the growth in the economy would move in tandem with the employment generation at various levels.
Obviously, Prime Minister Modi is conscious of this under current of anxiety amongst the people.
Keeping this need in view, Modi government has launched schemes such as Start up India , Make in India, hoping that it would lead to build huge enthusiasm amongst the first generation entrepreneurs, promote many employment opportunities and lead to massive growth at the base level.
It has also taken special measures to develop skill amongst the people. But, such steps are not yielding the expected results and it does not look that positive results would happen too soon.
In a vast country like India with steady increase in population growth at alarming level, it is just not possible for the government and organized sector to generate adequate employment opportunities for the rapidly increasing youth population.
The only way is to promote large number of tiny and small scale enterprises which need not invest much in technology and automation and would generate employment opportunities in a big way. With Start Up India projects, thousands of such tiny and small scale enterprises are required to be promoted all over India, particularly in small towns and rural areas.
When large enterprises are set up , they are supposed to lead to the setting up of many ancillary and small scale industrial units and service oriented organisations around them, stroking chain of developments , industrial/economic activities and employment. But, this is not happening, as the need of such large enterprises are increasingly being met by import rather than from the domestic small and tiny scale units.
Obviously, there is lack of adequate level of skill amongst the small scale entrepreneurs to set up projects in tune with the global standards and the need of the large sector. However, it should be made possible for the small and tiny scale units set up under Start up India projects to meet such needs.
At the same time, it needs to be pointed out that several road blocks still exist for the tiny and small scale units , where the Start up India projects are expected to be set up to meet the needs. This is a serious issue that Modi government has to attend urgently.
The fact is that Modi government has largely played it’s role and the role of the state governments and local bodies are extremely important to ensure that Start Up India projects are facilitated to operate without hurdles. On the other hand, the level of nepotism and corruption in the government machinery at the state government level and local bodies really lead to delays and harassment of the small scale units.
The Start up India entrepreneurs should also introspect about their shortcomings and how to overcome the problems instead of complaining about the various external factors.
There is challenge and opportunities facing the Start up India projects and it remains to be seen whether youth of India would overcome the challenges and seize the opportunities to meet the expectations of the nation from the Start up India entrepreneurs.
N.S. Venkataraman
Nandini Consultancy Centre
www.nandinichemical.com
. more
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View all 12 comments Below 12 comments
Government should focus on skill development more as this is the main criteria for a job. more
May 12
Business growth and Job Opportunities are not proportional and therefore even with the success of current days Startup I do not foresee the growth in Jobs. Current days Startup are not going to add much of the expected impact in Social and Economical growth as these Startups have no longevity and corresponding strategy. more
May 07
As per the 2012-17 Five year Plan – last Planning Commission report before it was wound up - 1.2 crore job seekers are going to join the work force over the next 15 years. This works out to 10 lakh / month or approx.. over 30,000 people join the workforce every day. The bulk of the job requirement is in the unskilled and low-skilled space and agriculture as the major employer of this workforce is generating lesser and lesser jobs due to technology automation resulting in a lot of such people moving to the cities in search of jobs. A large number of younger people, especially in the cities, are trying to setup their own startups not only because they would like to do so but also because they can not find a job despite educational qualifications! Startups alone can not solve the job creation problem even though the government needs to give high priority to solving the issues faced by startups. Job creation needs to be one of the top priorities of the government as this can, as an extreme, result in social unrest in the country. This is a complex problem and there are no easy solutions. The short term solutions require the government to invest in job creation schemes in a big way and one of the key long term solutions is education for all. more
May 04
Good Analysis In my Opinion Modi Govt. has not done any thing to revive the industry for employment generation ,Not a single new industry was established even in BJP ruling states during last three years, Only Advertisement will not serve the purpose,Demonitasation was good but no concrete solution for employment generation if it will continue then like Kejriwal ji , BJP will also suffer ,my suggestion is to start at least one industry in & around of two three district in every states within a span of one year. more
May 04
