hihirhulikal@yahoo.com
Hire , when you
need : Fire , when you
don't !
What is the amount of investment required to create 1
Million jobs per month ? ( = No of jobseekers joining India's labour market
each month )
That would depend upon the " Industry " for
investment
There are some , " Capital Intensive "
industries which would require a huge investment , whereas , there are some
" Labour Intensive " industries , where a much smaller investment can
generate 1 Million jobs
For example , to generate 1 Million jobs would need :
* Industrial Instruments ( Labour Intensive
)................... Rs 10,000 Cr
* Boilers / Steam Generating Plants ( Capital
Intensive )... Rs 500,000 Cr
{ Source : DIPP , Investment and Job Creation from Aug
1991-Mar 2014
as reported in Times of India / 17 March ,
2015 }
Of course , we don't have to create all of those 1
Million jobs per month , in just one or two industries
If we take an " Average Investment " required
across ALL the industries , then , may be , we need :
Rs 200,000 Cr to generate 1 Million jobs every month
ie : Rs 2 Lakh*Crores per month
ie : Rs 24 Lakh*Crores every year
Now , who has got that kind of money to invest , even
if we assume that
> there is a " Ready Market " for
all of those products , here and now ?
> this market will not shrink in the
foreseeable future ?
Obviously , the Governments ( Central + States ) ,
don't !
If we include FDI , may be Private Sector can raise that
kind of money
But will it invest in " Capital Intensive "
industries or in " Labour Intensive " industries ?
Given the current labour laws , it is clear that the
investors will choose to invest in Capital Intensive industries
Even if that means , creation of only 1 Lakh jobs
instead of 10 Lakh jobs !
At this point , it is worth researching whether USA
succeeds in creating some 150,000 / 200,000 new jobs every month , due to
its policy of :
" Hire when you need : Fire when you
don't "
Before hiring , do USA industrialists ask of themselves
:
" If things go wrong and I am forced to trim
my work-force , will this recruit
become a permanent burden ? "
--------------------------------------------------------------------------
hemen parekh
June 30 , 2015
B2BmessageBlaster
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