The export sector is estimated to have generated an additional direct employment of 1.4 million jobs (14.85 lakh) in the country during 2004-05, over the previous year 2003-04, bringing the total direct employment generated by exports to the level of 9 million (90.06 lakh), with exports amounting to US $ 79.6 billion in 2004-05. This does not include export related indirect jobs created through backward linkages and in logistics and related sectors which are estimated to add up to another 6.9 million jobs (69.66 lakh) jobs. In all, merchandise export activity seems to sustain nearly 16 million jobs in India currently, according to a study done by the Research & Information System for Developing Countries (RIS) titled “Towards an Employment-Oriented Export Strategy: Some Preliminary Explorations”. The study was undertaken at the behest of the Ministry of Commerce and Industry (Department of Commerce).
The Report says that there are number of opportunities for expanding exports as well as employment that remain unexploited. “If we can focus on exploiting these opportunities, it will not only be possible to surpass the US $ 150 billion target for exports set by the Government for 2009-2010 but also generate more jobs for India’s youth”, it says.
The elements of an employment oriented export strategy, according to the Report, would include small scale policy and industrial clusters; linking export incentives to incremental exports rather than total exports; attracting export-oriented foreign direct investment (FDI); strengthening enterprise-level innovative activity; social safety nets and labour reforms; fixing infrastructural constraints; restricting raw material exports; moving up the value chains; conforming to international standards; addressing trade barriers in major export markets in labour-intensive goods; and strategic access to markets.
India currently faces a major challenge of employment generation for its millions of unskilled and semi-skilled unemployed workers. The employment in the organised sector had shrunk in the recent years despite acceleration in GDP growth. Although India has emerged as a leading global hub for the knowledge based service industry over the past decade, the services revolution could not absorb these unskilled and the semi-skilled millions. India needs an industrialisation revolution to compliment the booming services to meet the challenge of employment creation. Some countries like China, Malaysia, Thailand, among others have built export-oriented manufacturing industries and have created millions of job opportunities, while generating output and foreign exchange, says the Report, which explores the role that exports can play in employment generation, the Study says.
The Report says that there are number of opportunities for expanding exports as well as employment that remain unexploited. “If we can focus on exploiting these opportunities, it will not only be possible to surpass the US $ 150 billion target for exports set by the Government for 2009-2010 but also generate more jobs for India’s youth”, it says.
The elements of an employment oriented export strategy, according to the Report, would include small scale policy and industrial clusters; linking export incentives to incremental exports rather than total exports; attracting export-oriented foreign direct investment (FDI); strengthening enterprise-level innovative activity; social safety nets and labour reforms; fixing infrastructural constraints; restricting raw material exports; moving up the value chains; conforming to international standards; addressing trade barriers in major export markets in labour-intensive goods; and strategic access to markets.
India currently faces a major challenge of employment generation for its millions of unskilled and semi-skilled unemployed workers. The employment in the organised sector had shrunk in the recent years despite acceleration in GDP growth. Although India has emerged as a leading global hub for the knowledge based service industry over the past decade, the services revolution could not absorb these unskilled and the semi-skilled millions. India needs an industrialisation revolution to compliment the booming services to meet the challenge of employment creation. Some countries like China, Malaysia, Thailand, among others have built export-oriented manufacturing industries and have created millions of job opportunities, while generating output and foreign exchange, says the Report, which explores the role that exports can play in employment generation, the Study says.
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