Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Sunday, 16 July 2017

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 !




[ Source :




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 ?



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



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