Research done in the current year based on MC analysis showed that the growth rate of jobs in the manufacturing sector doubled from FY14 to FY23. This kind of growth is quite impressive and has proved that the sector is dynamic. It has adopted new approaches to development and was supported by the government and its policies on the development of the industry. The manufacturing industry has always been one of the key players that significantly funded the economy and has experienced a phenomenal increase in job creation in the last decade.
A list of factors that have boosted job growth is as follows: FY14.
The following are social factors that have been attributed to the high increase in employment in manufacturing from FY14 to FY23. Among them, the Make in India programme is the most influential one, which was started in 2014 by the Government of India. The targeted campaign was to change the entire perception of India as a manufacturing nation by inviting manufacturing companies, both domestic and international, to set up their plants in India. This policy, in addition to promoting investment, also led to the generation of millions of new employment opportunities.
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One of them has been the industrial digitization and automation of several production processes. The general perception people had was that automation could result in loss of jobs in future, but it has had the positive side of creating new jobs that Young, involving complex skills that embrace technology, engineering and designing. Introduction of technology in the manufacturing lines has ensured that more production is done within a short time hence expansion of the companies hence having the effect of hiring more people.
Government Policies and Reforms FY14
The rate of employment generation, particularly in the manufacturing sector, increased almost twofold from FY14 to FY23 owing to different governmental measures towards the ease of doing business. For instance, The GST, which was introduced in the year 2017, has helped organizations structure tax policies more systematically and efficiently and has helped companies undertaking their businesses across the States. This made many manufacturing units to be established and expanded, thus leading to the provision of more employment.
Moreover the PLI or Production Linked Incentive plan initiated in the fiscal year 2020 has worked positively for sectors like electronics, pharma, automobiles and various other definitive industries to increased production. Due to this, the PLI scheme has encouraged the generation of employment since companies have had to establish new production lines in order to meet the set standards for incentives.
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