JOIN US Job creation is the biggest challenge, not only for the entire world but particularly for India to achieve higher growth. Manufacturing is a key factor contributing to India’s prosperous future, a top company official said.
Addressing a session on ‘Industrial Relations (IR) to be Part of the Business Strategy at Board Level’ here in Bengaluru which was organised by the National Institute of Personnel Management (Karnataka Chapter) and Karnataka Employers Association at the ‘Industrial Relations Summit - 2015’, on Friday, Volvo India Managing Director Kamal Bali said, “Every job created in the manufacturing sector creates two to three additional jobs in associated activities, in logistics, and in services — the multiplier effect.”
Manufacturing sector can be the main absorber of mass unskilled labour released from the agricultural sector. Currently, agriculture sector employs nearly 50 per cent of the working labour force (nearly 250 million people as of 2013).
‘No Work, No Way’
Wipro Infrastructure Engineering CEO Pratik Kumar said, “Labour laws that were drafted to suit the needs of the infant industrialisation era failed to keep pace with growing globalisation. This adversely affected the bargaining strength of companies, and they started buying peace, yielding to unrealistic demands of unions.”
Kumar said, “The government and political parties have to go beyond their own narrow prism and find the middle ground. Industry bodies will have to own up skill development. And unions have to educate their colleagues better and believe in the principle that ‘No Work, No Way’ will be the norm. Without all stakeholders stepping up, making India a powerhouse of global manufacturing will remain unrealised.”
DH News Service
The manufacturing sector contributes only 15 per cent to the GDP and the ‘Vision 2022’ is to create 100 million additional jobs (potential to employ 20 per cent of total work force directly, and another 20 per cent indirectly).
Bali said that though India is the second-largest country accounting for 17 per cent of civilisation, it is ninth in GDP, with among the lowest per capita GDP.
“Some facts to ponder upon like the labour cost (USD/hour) in India, 0.9; China, 2.8 (a multiple of three), US, 35.4 (40x); and Germany, 46.4 (50x). India’s costs are lower, but so is the productivity.”
Along with manufacturing, housing, defence, textiles, food processing, among others are future sectors growth for India. Bali said, “History tells us that all major economies (Germany, US, China) were initially anchored by the manufacturing sector for 40 to 60 years.”
There are three aspects for an organisation to succeed like products which could include technology, process, and people. “The good integration of all these leads to a successful journey for any organisation and, therefore, value creation happens through people...and shop floor is the place where value creation happens.”