OPEN APP
Home / Economy / Need to boost manufacturing to create jobs: Anand Mahindra
Listen to this article

Chairman of Mahindra Group, Anand Mahindra, while addressing shareholders at the company's 76th annual general meeting, said that there is an urgent need to boost the manufacturing sector to create jobs on a mass scale.

Anand Mahindra also said that India should take advantage of the global factors that are moving in its favor and there are some gaps that need to be filled in to take full advantage of the opportunities arising for the country.

"The most important of these (gaps) is jobless growth. The Indian unemployment rate is hovering around 7-8 per cent, according to CMIE (Centre for Monitoring Indian Economy). This is because job growth has not kept pace with the GDP growth," said Anand Mahindra according to news agency PTI.

"Only 40 per cent of the labor force that is capable of working is actually working or looking for work. The biggest sufferers are youth and women," said Mahindra.

The unemployment rate of India fell to 6.8 per cent in July from 7.8 per cent in June and is the lowest in the last six months. If we go by the CMIE data, this is due to a spike in agriculture activities during the monsoon.

"With one of the largest youthful populations in the world, it's easy to imagine the potential for social unrest if jobs don't grow along with the youthful population," the Mahindra group chairman said.

"The government is trying to do its bit and has (also) announced plans to hire one million people in government jobs by 2023, given that the country has a 900 million strong workforce, there's a lot more to do," Mahindra said.

He also mentioned that in the private sector, job creation is happening mainly at the lower end of the gig economy, which is not "enough".

"To create jobs on a mass scale and to take advantage of the global factors that are moving in our favor, we must boost manufacturing. Even more important than large conglomerates are MSMEs that can take advantage of the trend toward localization of manufacturing and the use of technology to create the scale," Mahindra said.

Anand Mahindra also gave the example of the US where 90 per cent of the new businesses are mom-and-pop shops. These shops despite having low investments create 67 per cent of the new jobs in the country.

"In India, too, taken together, MSMEs can be a spine for growth. Even though inflation is a concern, from the business angle, it can nevertheless provide a minimum threshold of returns on productive assets," he asserted.

With Inputs from PTI.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close

Recommended For You

×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout