Friday, December 29, 2017

India - Vision for Jobful Growth

30 December 2017

Just now, I made a Google search for 'Jobful Growth India'. To my surprise, I found all results to be for jobless growth only. Google could not show even a single document with the words 'Jobful Growth India'.  Why this has happend? Are there no documents, articles and papers that suggested measures for jobful growth.  I made a presentation in the Annual IASSI Conference on 4th December about the Employment Potential of Mudra Finance.  Employment to 2 Crore Persons per Annum can be provided in micro enterprises using the targeted credit of the Mudra Finance Yojana. The presentation is available on YouTube



The plan outlined in the above seminar was presented by me in a blog post on 25 August 2017. The plan is developed using  the data provided by NSS 73rd ROUND (July 2015 - June 2016) on micro units in India and the performance of the Mudra Finance Yojana for the last three years.

There is sufficient scope for Jobful Growth in India.

I read earlier and today once again I came across an article by Mr. Raamdeo Agrawal on Jobful growth. I worked with him during 2000-2001 as the person to take care of education and training of Motilal Oswal Securities. The stock market crash of that year resulted in my reaping the loss of a risky job shift. But it might have made me a lot wiser about real life business behaviour and intricacies of working in private enterprises. Earlier to that I worked only in Government academic institutions for about 18 years.

The title of the article by Raamdeo Agrawal is "Funding the Failures for Creating 'Jobful Growth.' The pont he makes is that to create jobs, new businesses have to be created either in existing firms or new firms. But the failure rate of new businesses is high. So the society has to be prepared to fund the possible failures to create jobs. Risk is to be taken by the society to start new businesses and to create jobful growth. Fearing risk and not taking it is not right for the society. Compensation for the risk can be given to venture capitalists and funding agencies by exempting their capital gains from taxation. So this exemption is an incentive to them fund even probable failures or it is an incentive to them to take higher risk. But as I realized in real life, when people take risks some will get profit and some will lose.

He suggested as strategies, creating profitable demand environment, local-equity combined with global debt model and a focused group on savings and investment in the country.

I suggested in a seminar last year that each MP has to prepare an investment plan for his constituency and submit to the government the policies and actions required by the Government to realize the investment plan (YouTube Video:

MPs have to make Investment Plans for their Constituency - Narayana Rao



The investment plans prepared by MPs  will make clear to the government the expectations of business people at the constituency level and provide right data and expectations that can be used in making annual budget and longer time programmes of the government. The Mr. Raamdeo's suggestion complements my suggestion and MPs can submit their constituency plans to the Focus group and for further evaluation and inclusion in the Government Budget and Plan.

I wish to see many more articles and papers on Jobful Growth in India.

Raamdeo Agrawal's Article

"Funding the Failures for Creating 'Jobful Growth."

Likely Job Opportunities in Micro Sector and SML Sector

If 2 crore job opportunities are provided in the micro sector, 20 lakh jobs can be created in the SML (small, medium and large sector). In micro sector, capital productivity (value of output per unit capital) will be high but labour productivity will be less. In SML sector, capital productivity will be low, but labour productivity will be high. The cost of production will be low in SML sector.

Once we reach a near full employment level, capital intensity can be increased in the micro sector to increase incomes and productivity of labour.

India’s jobless growth is a myth

Between 2009-10 and 2015-16, incremental jobs created exceeded the number of persons who entered the labour force by a wide margin
Dec 19 2017. 02
R. Gopalan, M.C. Singhi

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