amitabh.kant@nic.in
Dear
Amitabh ,
You
may like my following blog that I just posted on a few web sites
regards,
hemen
--------------------------------------------------------------------------------------------------------------------------
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 ? "
Question
that the Labour Laws must answer :
"
What comes first ? Creation of new jobs , or , retention of existing jobs
? "
--------------------------------------------------------------------------
hemen
parekh
June
30 , 2015
B2BmessageBlaster
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