Who is Clueless ?
==============
There are many subjects ( eg :
Crypto-Currency ) and many times ( right NOW ) , when I am clueless !
For example , on the subject of “ JOB GENERATION “ , I felt clueless when
I read the following remarks by Shri Panagariya
( Niti Aayog ) , as reported in Hindustan Times ( 11 July ) :
Panagariya said underemployment is
probably the biggest economic challenge that India faces right now and added
that rapid growth can be achieved by moving workers OUT OF AGRICULTURE to INDUSTRY and from SMALLER enterprises to BIGGER
ones
“ Underemployment is probably the
biggest economic challenge we face….. as many as 44.2 crore ( ie; 442 million ) or 91.2 % of the total, were
employed in AGRICULTURE or enterprises with NINE or fewer workers “
Panagariya said that excessive
employment in AGRICULTURE ( 46.9 % )
with lower output ( 18 % ) was slowing growth, and tackling that is the way to
achieve growth
“ If we set the output per worker in AGRICULTURE equal to ONE ( 1 ) , then output per worker in INDUSTRY is FIVE ( 5 ) and that in SERVICES
is ( 3.8 ) “ , he said
I wonder :
Can Shri Panagariya ( an eminent
economist ) , confirm ( or correct ) , the following figures of INVESTMENTS required for generating just ONE JOB , in different types of BUSINESSES /
INDUSTRIES ?
I am clueless as to how much CAPITAL is required to generate ONE JOB in AGRICULTURE !
How
much CAPITAL ( fixed + working ) would
be required to give jobs to all of them ?
Following
are my guesses to create just ONE JOB
in :
· Pan
Beedi shop ( self-employed )………….Rs 1 lakh
· Tiny
grocery shop ( owner operated )…. Rs 3 lakh
· Barber
shop …………………………………………..Rs 5 lakh
· Pharmacy
shop……………………………………… Rs 10 lakh
· Auto
Repair Garage………………………………. Rs 20 lakh
· Small
Factory ( 50 people )……………….. Rs 50 lakh
· Medium
Factory ( 100 people )……………. Rs 75 lakh
· Large
light engineering factory………………Rs 100 lakh ( Rs 1 cr )
{
Just proposed SAMSUNG factory in UP will invest Rs 5,000 cr and , at full
capacity , employ 5,000 people }
· Machine
Tool Manufacturing factory…………………. Rs 2 crore
· Heavy
Engineering factory ( Pressure Vessels )…. Rs 5 crore
· Service
Industry ( based on IT / internet )…………. Rs 50 lakh
And
, if my figures are even approximately CORRECT , then from where are we going
to find the Capital required to move 100 million workers ( out of 442 million )
from Agriculture to Industry ?
Incidentally , which Industry ( or industries ) have enough DEMAND to absorb 100 million workers ?
Incidentally , which Industry ( or industries ) have enough DEMAND to absorb 100 million workers ?
Of
course , I do not expect Shri Panagariya to agree with my following suggestion
to find
those
FUNDS , without RAISING TAXES or BEGGING for FDI
:
Why
a Begging Bowl ? ( 08 May 2017 )
17
July 2017
www.hemenparekh.in / blogs
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