For better job creation, government of India can invest in small firms instead of deploying financial capital in large units. Do you agree with this view? Explain (200 Words)
Refer - Business Line
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
The sluggishness of the manufacturing sector’s growth, not only because India’s IT sector can hardly absorb the hundreds of millions of Indians; but also because China had obtained a strategic advantage over India by building up extensive manufacturing capabilities.
Measurement of productivity
· The productivity of the Indian economy, and the productivity of its enterprises, should be measured by the numbers of decent jobs created per unit of capital, rather than the output per.
Economies of scope
· The ‘scope’ of the enterprise must be expanded to include many small, employment generating enterprises within a coordinated network.
· Technology should be applied for enlarging and strengthening clusters and networked enterprises rather than displacing workers with automation.
Developing industrial capabilities
· Government need to build competitive, private sector, industrial capabilities with government support.
· Even India’s IT sector grew, not because government was absent, but because the state had built the human resource infrastructure which gave Indian enterprises their competitive advantage.
Focus on skills
· To have more incomes, they must be engaged in productive work which improves their skills, so that they can earn more as they learn.
· India should seize opportunities to export.
Dev 3 years
Please review and provide feedback
IAS Parliament 3 years
Good attempt. Keep Writing.
