New Delhi: PHD Chamber of Commerce and Industry (PHDCCI) has proposed a comprehensive five-pronged strategy aimed at creating employment and fostering economic growth and development in the country.
At the top of the five pronged strategy, PHDCCI suggests Prioritizing the Manufacturing Sector which contributes approximately 16% to India’s GDP; the target should be to increase this share to 25% by 2030.
Achieving this target will require a focused approach to improve productivity and reduce the cost of key manufacturing inputs including the cost of capital, power, logistics, compliances, and land, said Hemant Jain, President, PHDCCI in a press statement.
Over the last few years, the government has made commendable strides by removing over 42,000 compliances, thus creating a more conducive environment for businesses. Further, more needs to be done for the ease of doing business at the factory level so that entrepreneurs are able to deploy more and more workforce in their respective premises.
The second crucial strategy is to strengthen the MSMEs. As these are the backbone of India’s economy with over 60 million MSMEs that contribute approximately 30% to the nation’s GDP and employ over 110 million people. This sector plays a central role in both job creation and innovation. Globally, the role of MSMEs in job creation is immense. Countries like the United States, United Kingdom, Germany, and Japan owe much of their economic resilience and job growth to small and medium enterprises.
MSME sector in India has demonstrated remarkable growth, with many transitioning from small, family-owned businesses to significant players in international trade. However, challenges such as easier availability of finances, robust technological infrastructure, and simplified regulatory environment should be strengthened for the futuristic growth of MSMEs, said Jain.
There is a need to strengthen the collateral free Credit guarantee scheme for the MSMEs so that they are able to meet their working capital requirements adequately.
Boosting rural demand and agricultural reforms has been highlighted as thethird strategy which emphasizes the importance of boosting rural demand, which is intrinsically linked to enhancing agricultural incomes. Rural demand, a key driver of economic growth, can significantly impact India’s employment landscape. Strengthening rural economies will create new opportunities for growth, particularly in the manufacturing and services sectors, said Jain.
As rural income increases the demand for manufactured goods, housing, and services will grow significantly. This enhanced demand trajectory will stimulate factory production and service sector growth, and deploy more workers across industries.
Enhancing Export Competitiveness is the fourth strategy by the industry body PHDCCI.India’s exports reached an all-time high of USD 778 billion, and the goal is to achieve USD 2 trillion in exports by 2030 – USD 1 trillion from merchandise exports and USD 1 trillion from services exports. To meet this ambitious target, we must significantly enhance our export competitiveness, says the industry body PHDCCI.
Key measures to boost export competitiveness include streamlining trade facilitation processes, improving customs procedures, and reducing logistical costs. Enhancing global trade agreements and improving infrastructure such as ports, airports, and transport networks will boost exports to new highs every year.
Apart from India’s strengths in labour intensive exports, India’s export strategy must focus on high-value goods and services, leveraging sectors where the country already enjoys a competitive advantage, such as technology, pharmaceuticals, textiles, and agriculture. Additionally, increasing participation in global value chains and focusing on technology-driven sectors will create opportunities for high-skilled jobs in research, development, and manufacturing, said Jain.
Fostering University-Industry Linkages is the fifth crucial strategy by PHDCCIas strong linkages between Universities and Industries will accelerate technological advancements, develop new products, and create high-tech jobs in sectors like biotechnology, robotics, and information technology. Establishing incubation centres and supporting start-ups will also be vital in nurturing an entrepreneurial spirit among the youth.
According to the PHDCCI president, these efforts will not only enhance employability but also help bridge the gap between academic and industry requirements, ensuring that youngsters are equipped to meet the industry demands of the adequately talented workforce.
India stands at a critical juncture in its economic journey. With the right combination of effective and meaningful policy reforms, infrastructure investments towards Viksit Bharat, the country has the potential to create millions of jobs and establish itself as a global economic powerhouse.
