The success of ‘Make in India’ hinges upon Skill India. Examine. (250 words)
Answers
Answer:
The best way forward would be to align “Skill India” and “Make-in-India” with a focus on our comparative advantage. A single-minded pursuit of increasing India’s manufacturing base might not yield the best results.
In India, like in many other developing economies, workers are shifting from agriculture to services.The April 2018 World Economic Outlook (WEO) by the International Monetary Fund (IMF) discusses the trends in manufacturing jobs and their implications. Chapter 3, by Bertrand Gruss and Natalija Novta, concludes that the decline in manufacturing jobs is not necessarily a cause of concern. The belief that a smaller manufacturing sector implies slower economic growth and a scarcity of well-paying jobs for low- and middle-skilled workers—therefore contributing to worsening inequality—might not hold true. The authors, in fact, provide evidence that the declining share of manufacturing jobs need not hurt growth or raise inequality, provided the right policies are in place.The key takeaways from the chapter are the following:
* The decline in the share of the manufacturing sector in employment might not have an adverse impact on growth and income equality;
* Some services sub-sectors can match the productivity levels of manufacturing;
* Bypassing traditional industrialisation and shift of employment from the agriculture sector directly to the services sector need not hurt growth; and
* Policies should aim at enhancing productivity across sectors and make gains from productivity more inclusive. This is of extreme relevance to India given that there is concern about loss of jobs and, at the same time, there is a big push towards the Make-in-India initiative.
In India, like in many other developing economies, workers are shifting from agriculture to services, bypassing the manufacturing sector. Compared to the 1950s, the share of agriculture in India’s GDP has more than halved, and the share of industry and services has more than doubled. However, the share of agriculture in employment has not come down drastically, with the sector still accounting for almost 50% of overall employment. In the recent decades, the manufacturing sector, too, has been a laggard in capturing the share in employment and has lost it to the services sector.
This skewed labour and output distribution has implications for India’s labour productivity. Data by the Conference Board—the global business membership and research association—shows that while India’s labour productivity has improved by 70% over the last decade, the overall productivity levels still lag behind those of other developing Asian economies. The difference with the developed economies is even starker. For instance, the productivity levels in Germany and the US are 5.1 and 6.8 times of India, respectively. The pace of productivity growth, too, has stagnated.
Explanation:PLZ FOLLOW ME
Answer:
Mere bag me ye hamesa hota hai, book ho ya na ho☺️✌
