When Government is putting all efforts to upscale share of manufacturing in the GDP to 25%, according to another Government study, even in the year 2022, out of the 14.5 crore new jobs to be created by the year 2022, only 3.7 crore will find employment in the manufacturing sector.
In reply to a question, Minister for Skill Development Rajeev Pratap Rudy has recently informed the Parliament that there will be intake of about 14 crore new workers in the year 2022, in 23 identified sectors while in agriculture, the largest employer so far, there will be a surplus labour of 2.5 crore who need to be absorbed in other sectors.
According to the Minister, Building and Construction sector will employ by the year 2022 about 7.6 crore people, against a total of about 10 crore persons to be employed in the manufacturing sector.
Among engineering sector, Auto Components will continue be the largest employer with about 1.4 crore people in the year 2022, an increase of 40% over the year 2013.
Notably, Capital Goods sector already undergoing a severe demand recession do not figure anywhere in sectoral Government data.
The moot question is if by Government’s own projection employment in manufacturing sector will grow by only 3% in next 5 years how can we achieve the near 50% increase in its output in terms of GDP!!
According to the Government’s projections, the traditional Textiles, Handloom and Handicrafts, Gems and Jewellery, Leather and Builder’s Hardware will continue to remain the bulk employer in the manufacturing sector.
Food Processing Industry will be another important growth story, employing about a crore people by the year 2022.
Electronics & IT and Pharma and Life Sciences are the two ‘new’ sectors which are expected to grow rapidly as shown by the two fold increase in employment in both the sector.
Interestingly, Beauty and Wellness sector (excluding Healthcare), another fledgling activity will employ about 1.4 crore persons by 2022 equalling the Auto Component sector!
Security services, presumably in the private sector, will employ another 1 crore persons. Hope this will also increase demand for electronic surveillance and other security related equipment.