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progressed further to services that
added more value. It was different in
the case of India where we moved to
services from agriculture. While this
helped in the creation of more jobs,
modern services needed highly skilled
and trained people, bodies who cannot
just migrate from farming.
“Manufacturing has the potential
to provide more jobs as the growth in
services may not result in a similar
growth in employment. Agriculture
provides the lowest wages and as you
move to manufacturing or services,
the income improves. In short, you
cross the poverty line, somewhere in
between. That’s what Korea and China
did.”
CK interrupts. “Again China? Why
do you want us to follow China? This is
why I say you are not patriotic.”
“But CK, let’s not forget this – 25
years of liberalization and growth
in industry resulted in half a billion
people emerging out of poverty in
China. Is it not something for all of us
to cheer about?
“We need to be worried about the
400 million poor in India, the numbers
that can swell if we do not find
enough jobs for new ones. So, Make
in India with a branding of the lion is
nothing but a branding of our national
manufacturing mission, that needs to
find one hundred million jobs in ten
years, and this is the biggest challenge
faced by our nation till now.
“More than the Indian
manufacturers making for the world or
brands from India succeeding in global
markets, the need of the hour is for
large corporations to set up factories
in India, generating opportunity to
unskilled or semi-skilled labor.
“What will make them invest here?
Maybe government initiatives to bring
in labor reforms, infrastructure and
so on; but a key benefit for them will
be the huge potential of the domestic
market.”
“You mean to say that we are
inviting large global corporations
to come and invest in India, use our
cheap labor and then compete with
Indian manufacturers to sell their
products in India; and then the Indian
companies close shop and more people
lose jobs?”
The lion’s roaring is now a changed
tune, more like a wolf and he has
stopped ordering more chai.
It is time for me to keep mum ...
“I don’t know. I am treading an
unknown zone. It has issues and
dangers on both sides. We need to find
jobs; we also need to protect jobs. If
“You mean to say that
we are inviting large
global corporations
to come and invest
in India, use our
cheap labor and then
compete with Indian
manufacturers to sell
their products in India;
and then the Indian
companies close shop
and more people lose
jobs?”
what the economists say is true, then
there are no simple solutions.
“Starting with the question – Why
should the large corporations come to
India — with so many fundamental
issues like archaic labor laws,
poor infrastructure, complex land
acquisition policies — if home-gro wn
brands provide more employment
opportunities?
“The biggest issue is the scale; it’s
not about hundreds but millions of
jobs.”
It’s December and the night is cold.
CK has gone back to sulking. I wish I
had Bapu with me. z
Pallippuram Sajith is the Director of
Welbound India. He can be reached at
[email protected].
JANUARY-FEBRUARY 2018 | SUPPORTED BY IPP & PSA | 13