India has unveiled a grand manufacturing policy that promises to take manufacturing to global levels and generate 100 million jobs in the next ten years.
India's service sector has taken over its primary and secondary sectors by a big margin in recent years. India is leader in software and BPO jobs. Many nations, especially the US, feel threatened that its cheap labor is weaning away jobs.
While India supported its service sector, it didn't pay much heed to the industrial sector and now its industry production faces tough competition from cheap imports - mainly from China. Over years, free international trade has dented India's cheap labor edge in manufacturing sector due to poor technology and absence of large scale.
Some experts feel that India may never be able to compete with China and Taiwan in mass production, with South Korea and Japan in white goods and electronics, with the US et al in defense production and so on. It, however, can develop a veritable industry targeting at domestic consumption and growth, with spillover for exports too. So, the manufacture of engineering goods, power equipment, white goods, automobiles etc would rise fast. This will generate employment not only directly but by encouraging ancillaries, trade, warehousing, maintenance, support services etc. Overall, the employment generation would be even higher than projected if the policy is implemented properly.
A significant aspect of the employment generation would be reverse brain-drain of talent from developed countries.
India's service sector has taken over its primary and secondary sectors by a big margin in recent years. India is leader in software and BPO jobs. Many nations, especially the US, feel threatened that its cheap labor is weaning away jobs.
While India supported its service sector, it didn't pay much heed to the industrial sector and now its industry production faces tough competition from cheap imports - mainly from China. Over years, free international trade has dented India's cheap labor edge in manufacturing sector due to poor technology and absence of large scale.
Some experts feel that India may never be able to compete with China and Taiwan in mass production, with South Korea and Japan in white goods and electronics, with the US et al in defense production and so on. It, however, can develop a veritable industry targeting at domestic consumption and growth, with spillover for exports too. So, the manufacture of engineering goods, power equipment, white goods, automobiles etc would rise fast. This will generate employment not only directly but by encouraging ancillaries, trade, warehousing, maintenance, support services etc. Overall, the employment generation would be even higher than projected if the policy is implemented properly.
A significant aspect of the employment generation would be reverse brain-drain of talent from developed countries.
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