A Study on Make in India Job Opportunities in India
Hareesh Kumar Thummalapally
Department of Financial Administration, Central University of Punjab.
ABSTRACT
India has had a significant issue with the creation of jobs. The “Make in India” programme aspires to make India a centre for global manufacturing and create enough jobs. However, there are significant challenges to the success of Make in India due to the state of the industrial industry today. The sector’s absorptive capacity has a history of declining, which raises severe concerns about the campaign’s ability to achieve its goals. In this situation, concentrating only on the manufacturing industry seems like a bad plan. The article makes the case that a better method is to discover suitable industrial products and services that can provide enough employment and spark growth. Along with this identification, it has become crucial to educate and skill India in order to prepare the workforce for opportunities for successful employment.
Received: oct 1, 2022| Accepted: Dec 15, 2022 | Published: Jan 5, 2023
Keywords: Make in India, Skill India, Manufacturing Sector, Vocal for Local, Labour, Employment.
Citation: Hareesh Kumar Thummalapally (2023) A Study on Make in India Job Opportunities in India. KMICS Journal of Commerce and Management, 1(1). https://doi.org/10.62011/kmicsjcm.2023.1.1.3
Correspondence: hareeshsky@gmail.com
Competing interests: The author has declared that no competing interests exist.
Copyright: © 2023 Hareesh Kumar Thummalapally. This is an open-access article. The use, distribution, and reproduction of this article in any medium is unrestricted, provided the original author and source are cited.
INTRODUCTION
The initiative “Make in India” was introduced on September 25, 2014, a “Vocal for Local” campaign that has brought the attention of India’s manufacturing industry on a global scale. Due to how well-received this campaign was, many states also launched their own regional campaigns. Vocal for Local grew like a forest fire between 2014-15 and 2019-20, with an average growth rate of 6.9% per year. The Make in India project focused on 25 economic sectors to generate employment and develop skills to transform India into a centre for global manufacturing and design. flagship initiative “Make in India” completed eight years to encourage innovation, construct world-class infrastructure, ease investment, and establish India as a centre for manufacturing, design, and innovation. One of the main goals of the “Make in India” programme is to open doors by giving as many Indian nationals as possible employment opportunities. It has prioritized the nation’s youth as its primary audience. The young entrepreneurs will be encouraged to approach their new ideas without agonizing over the source of hypotheses thanks to the investments in the targeted areas, such as media, medicines, tourism, and so forth. In search of a better future, the majority of India’s young population plans to leave the country. India has historically been devoid of innovations and fresh ideas due to a shortage of young workers. With the help of the “Make in India” initiative, young people would not only be given jobs, but their innovative ideas would propel the industrial sector forward. It has made great progress and is currently concentrating on 27 areas as part of Make in India 2.0. In recent years, 5 million new jobs have been added annually on average, but 12 million people join the labour force. By 2022, India’s labour force is anticipated to reach 600 million people. The establishment of jobs will battle poverty and assist people to leave agriculture, which has a limited ability to provide for their needs. The economic development model in India has been somewhat strange, giving advantages to trained labour who are frequently employed by foreign businesses. Because of this, manufacturing now accounts for 34% of China’s GDP. With China accounting for 22.4% of global production and India for only 2%, China has established itself as the world’s factory. India’s manufacturing sector, which makes up barely 15% of its GDP, is less productive than that of its rivals. The government has set a target of 25% of GDP by 2022. We need to use current technology on par with the developed world in order for this endeavor to be a huge success. We also need to focus more intensely, clearly, and maturely on the quality aspects of our products. Youth in India is both a strength and a menace. India must produce millions of new jobs each year in order to employ the vast majority of its youth labour force. The Make in India campaign was launched with great vigour since the new government is aware of this. Action plans for 15 industrial sectors are coordinated by the Department for Promotion of Industry and Internal Trade (DPIIT), whilst 12 service sector plans are coordinated by the Department of Commerce. The annual Foreign Direct Investment (FDI) nearly quadrupled to US$ 83 billion in 2021-2022 as the initiative to promote investment and innovation entered its eighth year. According to the Ministry of Commerce and Industry, FDI in the country in 2014-2015 was US$45.15 billion. The largest FDI inflow ever occurred in the years 2021-2022, totaling US$83.6 billion. This FDI was invested in 57 distinct industries, 31 different states and UTs, and 101 different countries. As part of the government’s liberal and open strategy to promote foreign capital, the Ministry asserts that the majority of sectors are available to FDI via the automatic method. The Production Linked Incentive (PLI) scheme, which covers 14 significant manufacturing industries, was reportedly adopted in 2020-2021 and significantly boosted the Make in India initiative. According to the Economic Survey 2021-22, the industrial sector’s gross value addition (GVA) is growing positively overall, despite disruptions caused by COVID. This industry now employs a greater number of people overall. Increase the manufacturing sector’s share of GDP (Gross Domestic Product) from its current 16% to 25%. By 2022, increase the number of manufacturing jobs by 100 million to increase the industrial sector’s growth by 12% to 14% annually. The current study focuses on Make in India, which offers job prospects to the young generation in a variety of sectors including skilled, semi-skilled, and unskilled manufacturing and service industries.
Make in India Primary Objectives are:
- fostering innovation and job creation at the nation’s frontiers,
- fostering skill development among employees and employers, and transforming India into a global hub for design and manufacturing
- implicitly assert intellectual property rights,
- promote India’s manufacturing sector,
- remove the complications of rules and regulations in the bureaucratic process of doing business, increase government accountability and transparency,
- improve India’s global ranking on the Ease of Doing Business Index It increases India’s manufacturing sector’s competitiveness on the world stage.
To ensure the success of this campaign, new rules were introduced to encourage foreign direct investment. Many additional activities were also coordinated, such as the establishment of an investor facilitation cell in 2014 to assist investors in obtaining merger services and permissions.
Major industrial corridors:
1. Industrial Corridor of Amritsar-Kolkata
2. Economic Corridor of Bengaluru-Mumbai
3. Industrial Corridor of Delhi-Mumbai
4. Industrial Corridor of Vizag-Chennai
5. Industrial Corridor of Chennai-Bengaluru
Need of the study and Methodology
The present study emphasizes the gap between the current workforce and the opportunities through the Make in India. The study is based on secondary data with the main focus on the impact of Make in India’s creation of job opportunities in the manufacturing sector. The data has been gathered from official government publications, Ministry of Commerce reports, Reserve Bank of India bulletins, scholarly journal articles, and verified online resources.
According to the NITI AAYOG Projections, the employment growth might reach 56.9 crores by 2030, up from 46.9 crores today, and the GDP could rise from 87 lakh crores in 2011-12 to 244 lakh crores in 2029-30. Based on projections by the NITI aayog there is a high importance on the creation of employment opportunities in India.
Objectives of the Study
The present study’s focus is to map Employment opportunities generated through Make in India and to study the overview of the Make in India campaign on selected sectors’ growth.
Review of Literature
Kalaivani, K. (2015): This study contributes to our understanding of how Make in India has affected HRM practices in our nation. The correlation between HRM procedures and employment opportunities is also covered in the study. The study discovered a considerable, favorable, and significant connection between Make in India and HRM practices. The survey also discovered that HRM practices have evolved into a tool used by HRM specialists to create new cultures and cultural shifts using cutting-edge, exciting HRM practices.
Seema Sangwan (2015) foreign direct investment’s involvement in making “Make in India” a reality, an article. The focus of this study is on the growth that has resulted from the increase in FDI that has occurred in India since Modi announced Make in India. Foreign direct investment (FDI) was found to have a significant impact on industrial production. Multiple positive effects of FDI on economic growth were found by the researchers, including but not limited to increased productivity and more efficient technology transfer.
INTERPRETATIONS ON DATA OBTAINED FROM VARIOUS GOVERNMENT WEB PORTALS
The Effects of “Make in India” Initiative in Aviation Sector
Make in India Takes Wings: The C-295 transport aircraft manufacturing plant was officially opened in Vadodara by Tata Advanced Systems Limited (TASL) and Airbus, Defence & Space, S.A., Spain, providing the Hon. Prime Minister’s “Make in India” initiative with yet another substantial boost. The Indian Airforce’s fleet of Avro-748 aircraft will be replaced by dependable and durable Airbus C295 medium transport aircraft thanks to a partnership between TATA and Airbus. The beginning of this project serves as a testament to the progress that India has made with its “Make in India, Make for the World” strategy. The largest investment in the defence industry and the first of its kind, it is advancing the domestic defence and aviation manufacturing ecosystem in the nation. The TATA-Airbus C295 production facility presents a fantastic opportunity for the Indian private sector to break into the highly competitive and technologically advanced aviation market. It will improve domestic production capacities, resulting in less reliance on imports and more defence exports. It is important to mention that all 56 aircraft would be equipped with an indigenous Electronic Warfare Suite from Bharat Electronics Ltd. and Bharat Dynamics Limited, two Indian Defense Public Sector Undertakings (DPSUs). Along with tools, jigs, and testers, manufacturing of over 13,400 detail parts, 4,600 sub-assemblies, and all seven major component assemblies will be done in India. In addition, the TATA Consortium has identified over 100 local MSME suppliers to be included in this project’s manufacturing supply chain. The effort seeks to greatly strengthen the nation’s aerospace ecosystem by creating 600 highly skilled jobs directly, over 3,000 indirect jobs, and an additional 3,000 medium-skill employment opportunities. Hangars, buildings, aprons, and taxiways will all be developed as part of the project, making them an important part of the final product.
The Effects of “Make in India” Initiative on Toys Manufacturing Sector
The toy industry in India has grown rapidly over the past eight years, creating many new jobs. The importation of toys has dropped by 70% during the past three years. In comparison to the previous fiscal year, imports of toys into India dropped by 70.35 percent, from US$ 371 million to US$ 110 million. From FY 2018-19 to FY 2021-22, imports of toys with HS Code 9503 dropped from US$ 304 million to US$ 36 million. Even more impressively, exports increased by 61.38 percent over the same period. The export value of toys with HS Codes 9503, 9504, and 9505 increased by 61.39% from US$ 202 million in FY 2018-19 to US$ 326 million in FY 2021-22. From FY 2018¬19 to FY 2021-22, HS Code 9503 toy exports grew from US$ 109 million to US$ 177 million. It has been reported that in his speech at “Mann ki Baat” in August 2020, Indian Prime Minister Mr. Narendra Modi made a compelling case for “Rebranding the Indian Toy Story,” stressing the importance of providing children with age-appropriate toys, recognising the educational value of play, and basing toy design on Indian values, history, and culture in order to promote domestic design and establish India as a major toy manufacturing country. We can easily generate between 20,000 and 30,000 direct jobs in the toy manufacturing sector with the support of the Make in India project.
The Effects of “Make in India” Initiative on Mobile Phone Industry
In the first quarter of 2022, Apple supplied over 1 million “Make-in-India” iPhones to India, a startling 50% YoY increase in domestic iPhone shipments. The first quarter of 2022 saw a 22% increase in iPhone sales in India, according to market research company Cyber Media Research (CMR), with sales of the iPhone 12 and 13 taking the lead. The country’s robust growth momentum has been aided by Apple’s upgraded and expanded iPhone production facilities in India as well as aggressive retail efforts. Apple is projected to hold a 5.2% market share in India in 2022. The iPhone SE and iPhone 12 are put together in the Wistron facility, while Apple makes some of its most technologically advanced iPhones in the nation, including the iPhone 11, iPhone 12, and now iPhone 13. With a 52% market share in India in the first quarter of 2022, the iPhone 12 maintained its lead over the iPhone 13 (20%) and iPhone 11 (18%). Apple had a 31% increase in iPad sales in India, with the iPad 9th generation (Wi-Fi) capturing 45% of the market. These international device manufacturers are aggressively pursuing local production in India. In 2017, the Karnataka Industrial Areas Development Board (KIADB) granted the contract manufacturer access to 43 acres of land. Ten thousand jobs are anticipated to be created by Wistron’s plant, of which the business has already hired 2,000 people.
CONCLUSION
By 2025, India has the capacity to increase the GDP share of manufacturing to 25%. To make this vision a reality, the government must serve as the focal point of convergence for all sectors— public, commercial, and nonprofit—as well as all stakeholders. Whether it be labour reforms, sector reforms, or the removal of economic impediments, the government must implement policies. India’s developing economy provides both domestic and foreign investors with equal investment options. It is our duty to support the rising economy. This research shows that there is an immediate need to skill, re-skill, and up-skill the labour force since, notwithstanding covid- related disruptions, there is a tendency for positive overall growth of gross value addition (GVA) in the manufacturing sector, as reported by Economic Survey 2021-22. This will allow the country’s unemployed population to be effectively utilised for the creation of Industrial Corridors. From 57 million jobs in the year 2017-18 to 62.4 million jobs in the year 2019-20, this industry now employs a greater number of people overall. Road connection, housing for all, the Swachh Bharat Mission, smart cities, etc. The Make in India project, which might result in up to 100 million skilled employees in the manufacturing sector, can be successful with a cooperative and convergent strategy. Therefore, the skill India initiative would make a job-ready skilled workforce of the industry available for enhancing their productivity and facilitating faster manufacturing sector and overall economic growth, while the Make in India initiative would boost manufacturing activity and thereby create jobs.
REFERENCES
- Kalaivani, K. (2015). A Study on the Impact of Make in India on HRM Practices-An overview. Indian Journal of applied research, 5(4).
- Gautam, K. B. (2021). Conceptual Framework of Make in India Campaign and It’s Impact on Indian Economy. Journal of Commerce and Trade, 16(2), 23-29.
- Chatturvedhi, S. (2013). Skill development for the youth-A Global Quest. AISECT University Journal, 2.
- https://www.niti.gov.in/
- https://content.techgig.com/mobile-technologies/made-in-india-iphone-12-apple-supplier- starts-hiring-local-employees-for-production/articleshow/77670514.cms
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- https://www.ibef.org/news/make-in-india-completes-eight-years-annual-fdi-nearly- doubles-to-us-83-billion