NCAER Report Calls For Reorienting PLI Scheme Towards Labour-Intensive Sectors

(MENAFN- KNN India) New Delhi, Dec 12 (KNN) A National Council of Applied Economic Research (NCAER) report has called for reorienting production-linked incentives (PLI) schemes towards labour-intensive sectors such as textiles, garments, footwear, and food processing to create more jobs.

The report titled“India's Employment Prospects: Pathways to Jobs” said that in the services sector policy support for tourism, education and health can create large-scale, inclusive employment.

The report underlined the role of skilling and small enterprises as key drivers of job creation in the country.

NCAER Vice Chairman, Manish Sabharwal while launching the report said that India is on track to become the world's 3rd largest economy.

He further said that while the country's per capita GDP currently ranks 128th, it also highlights opportunities to prioritise employment and inclusive growth.

Authored by Professor Farzana Afridi and her team of researchers at NCAER, the report has highlighted the need to overcome bottlenecks in increasing both the quality and quantity of workforce participation and labour productivity.

“India's self-employment dominance is due to economic necessity rather than entrepreneurial dynamism. Just like small farmers, most of the small enterprises function at subsistence level. India must confront the reality that its employment future is tied to the productivity of its smallest enterprises,” said Prof Afridi.

The lead author stated that enterprises using digital technologies hire 78% more workers as compared to those not using tech.

"Even a 1% increase in access to credit increases the expected number of hired workers by 45%,” said the lead author.

The report estimates the multiplier effects of inter-sectoral linkages to project that a moderate growth in Gross Output (GO) of the relatively more labour-intensive sub-sectors within manufacturing and services will lead to multi-fold job creation by 2030 –53% in the textile, garments, and related industries in manufacturing, and 79% more jobs in trade, hotel, and related services.

(KNN Bureau)

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