According to a study by global management consulting firm McKinsey and Company, the manufacturing sector in India could grow six-fold to US$ 1 trillion, by 2025. The rising demand in the country and the aspirations of multinational companies (MNCs) to establish low-cost plants in India, are seen as. Manufacturing sector can actually turn out to be the Achilles Heel of India’s economy
However it is important to understand that India’s manufacturing sector is vital for its economic progress, however the current condition of this sector forces us to believe that India has followed a peculiar path of growth from primary directly to tertiary sector, completely missing out the secondary sector.
In 2013 Deloitte’s global index for 38 nations ranked India as the fourth most competitive manufacturing nation. The country’s economy saw massive expansion in the period 2006–2011, attaining a five-year Compound Annual Growth Rate (CAGR) of 7.8 percent. The growth was led in particular by the auto industry. But that revival seems to have been short-lived. India’s automobile industry has entered a phase of stagnation, and so too has organized manufacturing as a whole, as shown by the recent numbers on IIP growth. India’s industrial output has declined or grew at very low rates in almost every month after July 2011. . Industrial production, as measured by the Index of Industrial Production (IIP), fell 2.1% in November, marking the second consecutive month of contraction. Industrial production unexpectedly contracted in November as buyers burdened by inflation put off purchases while export growth slowed to a six-month low in December.
Employment and unemployment surveys conducted by the National Sample Survey Organisation (NSSO) shows that the...
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...acturing set up. Labour intensive manufacturing sectors such as textiles and garments, leather and foot wear, gems and jewellery should be encouraged in order to mix growth with job creation.
The Union Government is striving to give a new push to the manufacturing sector. The government hopes to ensure that 25 per cent share of gross domestic product (GDP) growth comes from manufacturing by 2022 and eventually create 100 million job opportunities to make the growth inclusive. The Confederation of Indian Industry (CII) which was set up by the government in January 2013 to revive the projects that have got stuck due to various reasons, has cleared 300 cases that account for an investment of more than Rs 6 lakh crore. More such initiatives need to be taken by the government and we can be a bit sure that government will take more steps especially in the election year.
Firstly, industrialisation has expanded the employment opportunities in India. People living in rural areas have moved to cities in search of better employment.
To being with the barriers of entry which including strong currency and higher labor have the most significant impacts on auto making industry. In 2013, Holden would cut 12% of its workforce and has announced a three-year pay freeze agreement to the reminding workers to keep operates the manufacturing plant in South Australia (Thurlow, R. 2013). Moreover, a strong currency not only lead to less competitive on nation exportation but also increases the amount of cheaper imports from emerging market like China and Thailand caused by globalization. For instant, China which enjoys plenty of human power which strengthen its competitive of export products (Curran, E. 2013). Australian manufacturers, therefore, have lower competitive power against imported goods and services. Although the total number of car sales increased, the sale of Australian-made vehicles has significant (20%) fall as Thurlow, R. & Glynn, J. 2013, stated. It seems barriers of entry blocked the auto making industry hardly.
be the increase in jobs. Creation of new jobs will take place in the manufacturing
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
Introduction India is the world’s second most populated country with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less a stable democracy. Until 1991, Indian governments imposed economic austerity and its markets were comparatively closed to the world. Economic reforms in 1991 brought about a change which made India an attractive and huge market for multinational corporations from all over the world (Joshi 8). Retail industry within a globalized world is one of the most thriving and profitable sectors.
How ever industry is developing at a quick pace and if India can cut down its logistics cost from 14% to 9% of GDP ,sparing to the tune of USD 50 billion will be acknowledged at the present GDP level, making Indian Goods more aggressive in worldwide business sector. Also, development in the logistics segment would suggest enhanced administration conveyance and clients' fulfillment prompting development of fare of Indian products and potential for formation of openings for work.
There are a multitudinous number of both economic and social difficulties associated with unemployment. One fundamental reason why the government particularly stresses on reducing unemployment levels is as a result it poses a great cost on the economy. Not only does it affect the economy, but also it poses a great threat towards the living standards of the unemployed people itself. This could lead to many receiving less or no income based on whether or not they receive unemployment welfare benefits from the government. Reduction in income, would lead to a less disposable inc...
From political aspect, government should initiate to apply sustainable policies for the beneficial of the industry. Some of the initiatives that the government has taken are releasing of a subsidy of $533.87 millions for textile industry under the technology Up-gradation Fund Scheme (TUFs). Government has also extended 10% capital subsidy and 5% interest subsidy on installation of machineries under TUFs.
The fourth largest sector in the Indian economy is all set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).
All of these above show the influence of the unemployment. In spite of how many
People need money to purchase all kinds of goods and services they needed every day and sometimes, for goods or services they desire to own. To fulfill that, they have the essential need to earn money. In order to earn money, they must work in either in fields related to their interests or to their qualifications. However, people will meet different challenges during their jobs-hunting sessions, such as many candidates competing for a job vacancy; salaries offered are lower than expected salaries and economic crisis or down which causes unemployment. Unemployment is what we will be looking into in this report. Dwidedi (2010) stated that unemployment is defined as not much job vacancies are available to fulfill the amount of people who want to work and can work according to the current pay they can get for a job they chose to work as. There are four major types of unemployment: frictional, structural, cyclical and seasonal unemployment.
BIS. 2010. Manufacturing in the UK: AN Economic Analysis of the sector. Economics paper 10A. London:Crown Copyright.
India's strategy for development has had many critics. It was pointed out that the emphasis on heavy industry
In December 2007, the United States of America experienced a very scarce yet appealing setback. In fact, because of this specific dilemma between 200,000 and 500,000 were left unemployed and without a stable home. The national Bureau of the Economic research defined this nationwide downfall as “The great recession”. According to the U.S Bureau of labor statistics the unemployment rate has not made a drastic improvement since the start of the great recession. Unemployment has become that is still rising today with a slow rate of change. Unemployment is usually expressed as a number or as a percentage of a larger number. Although it has been ambiguous who has to be included in the percentage, there are members of society without a job, for whom it is certain that should not be added. Officially the unemployed are the people who are registered with the government as willing to work and able to work at a going wage rate but can’t find suitable employment despite an active search for work. In the article “why long-time employment can’t get back on track”, the author begins speaking on a ...
The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto