Atmanirbhar Bharat will drive an Era of Employment and Economic Growth

L&T CHRO Dr. C. Jayakumar on India’s evolving employment landscape, with schemes such as ‘Make in India’, #Atmanirbhar Bharat and Production Linked Incentives (PLI) driving significant growth.

India’s employment landscape is undergoing a transformation. Schemes such as ‘Make in India’, Atmanirbhar Bharat and Production Linked Incentives (PLI) are driving significant employment growth.?

Launched to make India a global manufacturing hub, the 'Make in India' initiative focuses on 25 key sectors and aims to boost domestic manufacturing, attract foreign investment, and enhance global competitiveness. Atmanirbhar Bharat emphasizes self-reliance, import reduction, and growing domestic production. Investments in digital infrastructure, large-scale projects, GST reforms, and technology-driven services are particularly creating opportunities in white-collar sectors. All of them will boost job creation across sectors.

Global Shifts and India’s Advantage

India’s young population, with an average age of 28.4, offers a major advantage over ageing developed nations. India's Labour Force Participation Rate (LFPR) at 52% is significantly lower than the US (73%), China (76%), and the UK (78%). Increasing it by just one point annually could create 95 million non-agricultural jobs in 25 years.

Additionally, shifting global trade winds further bolster India’s position. The US’ focus is shifting from China to India, attracted by competitive costs, abundant labour, and a booming domestic market. Streamlined regulations and an enhanced business environment are attracting significant Foreign Direct Investment (FDI), further fueling job creation.

Government Initiatives Bolstering Growth

The government's efforts in job creation and skill development, as outlined in the Union Budget 2024-25, demonstrate a forward-thinking approach to harnessing India's demographic dividend.

These measures will not only help productively engage our growing workforce but drive sustainable productivity growth and economic prosperity. By modernising and upgrading industrial training institutes and supporting entry-level first-time employees, we can bridge the skill gap and ensure our youth are industry-ready. This proactive and pragmatic approach will play a vital role in achieving our collective goal of a Viksit Bharat—an empowered, inclusive and developed India.

PLI schemes, with a 33% budget increase (Rs. 6200 crore for FY2025), have attracted Rs. 1.03 lakh crore in investments, creating jobs for over 6.78 lakh individuals. Other initiatives like PM Mudra Yojana have fueled MSME growth, employing 15 crore people, including 3.4 crore women. The Aatmanirbhar Bharat Rozgar Yojana has also exceeded expectations, enrolling 7.57 million new employees.

In tandem with these efforts, the National Manufacturing Policy (NMP) aims to increase the manufacturing sector's GDP share to 25% and create 100 million jobs by establishing National Investment and Manufacturing Zones (NIMZs) and simplifying business regulations. This policy supports the broader objectives of 'Make in India' and Atmanirbhar Bharat, fostering a robust manufacturing ecosystem that drives economic growth and employment.

Vocational Training and Skill Development

With only 24% of India's workforce skilled for the digital economy, vocational training and upskilling are vital to preparing the youth for future jobs.

• National Education Policy 2020 aims to equip 50% of students with vocational skills by 2025, aligning education with industry needs.
• The PM Internship Portal has listed close to 1 lakh internship opportunities in less than two weeks since launch. These opportunities span 24 sectors including oil, gas & energy, manufacturing, travel & hospitality, automotive, and banking and financial services.
• Apprenticeships, once limited to blue-collar roles, are expanding to IT, finance, and healthcare, providing practical experience.
• Continuous upskilling ensures employability, boosting productivity and economic growth.

Promoting Diversity, Equity and Inclusion for Sustainable Development

Diversity, Equity, and Inclusion (DEI) are not just moral imperatives but strategic necessities for India's continued economic resurgence. By providing equal opportunities, companies unleash a wider talent pool, driving innovation and productivity. Diverse teams outperform homogenous ones, leading to higher revenues and shareholder returns. DEI is integral to India's journey towards self-reliance, ensuring that every individual's potential fuels national prosperity.

Role of Corporates in Bolstering Job Creation in India

As one of India's leading conglomerates, L&T is uniquely positioned to contribute to India's evolving employment landscape. Corporations like L&T can play a pivotal role in fostering a conducive environment for job creation, skill development, and industry alignment by leveraging initiatives that align with the government’s vision for a self-reliant India.

Scaling Vocational and Skill Development Initiatives - L&T’s Construction Skills Training Institutes (CSTIs) are exemplary models of how corporates can address the skills gap in India. These institutes focus on imparting industry-specific skills to the youth, empowering them to take on roles in construction and infrastructure projects. L&T has successfully trained over 400,000 individuals through CSTIs, with a 75% placement rate in various projects across the country.

Public-Private Partnerships - Collaborating with the government and educational institutions, corporates can expand their reach to underprivileged sections of society, ensuring inclusive employment growth. L&T’s efforts align with the goals of programmes like the National Skill Development Mission (NSDM), helping enhance India’s human capital and readiness for emerging sectors.

Technology and Innovation for Future-Ready Skills - L&T’s ongoing investments in cutting-edge technologies such as 3D printing, AI, and automation are also contributing to the creation of high-tech jobs. In addition to generating employment, these advancements are integral to transforming traditional sectors and bringing in the next generation of digital skills. Corporates need to continually upskill their workforce to remain competitive in this fast-evolving landscape.

By continuously investing in skill development, creating new avenues for employment, and driving public-private collaborations, L&T is not only contributing to the growth of its workforce but also playing a significant role in shaping the employment landscape of an Atmanirbhar Bharat.

A version of this article appeared in The Hindustan Times on October 18, 2024 - https://www.hindustantimes.com/ht-insight/economy/atmanirbhar-bharat-will-drive-employment-and-economic-growth-101729085392185.html