(MENAFN- KNN India)
New Delhi, Jul 25 (KNN) The recent budget announcement of employment-linked incentive schemes is expected to catalyse a significant surge in job creation within the sector.
Industry experts project that these initiatives will play a crucial role in achieving the ambitious target of a USD 500 billion Electronics manufacturing ecosystem by 2030.
The new schemes, unveiled by Finance Minister Nirmala Sitharaman, are designed to support both employers and first-time employees. Of particular note is Scheme B, which aims to facilitate bulk hiring in manufacturing with a substantial Rs 52,000 crore outlay.
This scheme is projected to benefit 3 million workers over two years, offering employers who increase their workforce by 50 workers or 25 per cent an incentive of 8-24 per cent of wages, split equally between employer and employee.
Rajoo Goel, Secretary General of the Electronics Industries Association of India (ELCINA), emphasised the transformative potential of these initiatives. "Domestic manufacturing capacities are set to increase multifold over the next 6-7 years, in turn creating 1 million new direct jobs by 2026 and up to 5 million by 2030," Goel stated. He further projected that an additional USD 36 billion in investments would be required by 2030 to support this growth.
The optimism is echoed by Sumit Kumar, Chief Strategy Officer at staffing firm Teamlease, who noted, "The projected budget allocations are anticipated to not only drive industry growth but also contribute to achieving a USD 500 billion benchmark in electronics manufacturing by fiscal year 2030." Kumar estimates that this could lead to the creation of 5.5-6 million direct jobs within the same fiscal year.
These projections align with a Niti Aayog report, which forecasts the electronics manufacturing industry to produce USD 350 billion worth of finished goods, supported by a USD 150 billion component manufacturing ecosystem by 2030.
The India Cellular and Electronics Association (ICEA) estimates that the industry will need to expand its workforce from the current 1.3 million to 4-5 million by 2030 to support this growing ecosystem.
However, industry executives have raised concerns about the schemes' applicability to contractual workers, who form a significant portion of the workforce in many electronics manufacturing units.
"There is a certain grey area in the scheme, which needs to be ironed out," an unnamed industry executive commented, highlighting that many blue-collar jobs at factories are filled through third-party staffing firms.
(KNN Bureau)
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