India: What it can give to the world.Dilip Jhunjhunwala | Workforce | Unemployment

What INDIA can give to the WORLD

by:- DILIP JHUNJHUNWALA MBA dilipjhunjhunwala@yahoo.com

21st century: Asia‟s Century
Power

shift from Atlantic to Asia
New World Order

Emerging

India

on strategic Radar of Developed and Developing world

India‟s Advantage

 


 

Demographic Societal Building Block English language Affinity to maths Credible IT image Steady Growth Trajectory Strong will, enthusiasm and spirituality that gives honesty & commitment to the workforce.

Workforce shortage in developed countries by 2020
Maximum projected shortage
   

United States– 6.1mn Canada – 1.7 mn Spain – 2 mn Japan – 2.8 mn Over 50% shortage predicted in English speaking countries.

Median age by 2025
        

USA – Canada – Mexico – Europe – France – Italy – UK Russia – Japan – China --

39.3 years 42.9 years 32.5 years 45.4 yrs 43.3 yrs 50.7 yrs 44.5 yrs 43.8 yrs 50 yrs 39 yrs

India --

31.3 yrs

India – youngest country of the world

Average age today 23 years while that of Japan 41 years.
Demographic Dividend: YOUTHFULNESS

Future

In 2025, out of every 100 workers in India 12.1 will be above 65 yrs as compared to 49 in Japan.
In next 10 years, India will create 47 million workforce to lead the world. 100 million at present are in schools.

Reality check

1080 mn population with a 482 mn workforce. Unemployment at 9.2% By 2020 – 63 mn unemployed, more than entire population of UK, France & Italy! 90% of workforce in the unorganized sector. Low skill levels among women causing rise in unemployment rate for women.

India‟s labour Market


Labour force participation is low 560 million of a 1 billion population Organized employment has been stagnant at 40 million since last 30 years! Unorganized employment is the bulk of labour force (350 million) Given the employment elasticity of 0.15 and ICOR(3.75), the 8 million new jobs needed to freeze unemployment, requires GDP growth of 13% and investment of $ 130 billion.

Problems

Low overall productivity due to lack of supportive nationwide infrastructure Large number of people become apprentices in the unorganized sector to pick up saleable skills. Skills generated in the unorganised sector have no formal recognition! (people with manual work in India has higher happiness index) Labour market opportunities for even the most skilled labour are restricted to local market

An idea
Alternatively viewed, this means that India has the unique opportunity to:  Complement what an ageing world needs the most- productive workers  Provide investment opportunities for ageing countries for sustained return on investment (liberal economic policies, stable political environment, cheap productive sources and vast market at present)

Vision

J.F Kennedy said, “We must reach the moon” and we reached
Mahatma Gandhi said, “Independence without violence”. We achieved it.

VISION
Today‟s slogan:

“India - The Skills Capital of the World”

New world new priority
There was a time to die for the nation , now it is the time to live for the nation.

Momentum

India has the potential to become the skill capital of the world (It provided “0” to the world leading to today's global technology but missed the mid course correction!) Labour force is skilling fast with vast and rapid increase of education opportunities. Many things need to be done for India‟s rapid transition out of poverty and under-development specially in rural India.

Propositions
In addition to white and blue collar skills, India needs to recognize:

Its vast pool of knowledge workers

skilled workers at the grass root level in unorganized sector. Government needs to provide recognition to the workforce in unorganized sector to make them employable by the MNCs entering India.

India needs thought shift

From employment to employability (By rapidly making the provision of „industry oriented practical skill education‟ rather than current focus on traditional academic degrees) Giving school education system a global air.
Urgent need for genuine focus and clear strategies for providing infrastructure in rural and semi-urban areas through private public participation

THANK YOU

The journey has just begun
Dilip Jhunjhunwala dilipjhunjhunwala@yahoo.com

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