Today’s Business Standard carries a news report titled
:
Narendra Modi likely to announce big-bang economic
package on Monday
Prime Minister Narendra Modi is
likely to announce some big-ticket measures on Monday — also the birth
centenary of Sangh Parivar icon Deendayal Upadhyaya — to stimulate the economy,
which saw growth plunging to a three-year low of 5.7 per cent in the first
quarter of 2017-18.
Modi might announce a
package for power, housing and social welfare
programmes to generate jobs and perk up demand. The package is
being pegged at Rs 40,000-50,000 crore.
If anyone thinks this stimulus will turn
the economy around , he is in a State of Denial
!
Last quarter , “ Manufacturing Sector “ grew at 1.6 % , whereas “ Service Sector “ grew at 8.7 %
Two years back , NDA government was
obsessed with the idea of increasing the share of manufacturing in our GDP from
15 % to 25 %
Now , 2 years later , exactly the opposite seems to be happening !
It was argued that such a shift ( from SERVICES to MANUFACTURING
) , will provide jobs to those 12 million youth joining the ranks of UN-EMPLOYED
, each year
But PRIVATE investment in Manufacturing is just not happening ! Nor
likely to happen , any time soon !
And , if and where , it is happening , very few new jobs are
getting created ( - what with creation of just ONE job in large organized
sector , requires CAPITAL of around Rs 1 CRORE
! )
With ever-rising wages , more and more , industrialists are going
in for AUTOMATION
through deploying ROBOTS – which do not demand salary-raise / do not get tired
/ work for 24 hours / do not take leave or go on strike or mind being laid off …etc
!
And when the businesses do
need some humans ( to work in factories / offices / shops / warehouses etc ) , they
are hiring TEMPORARY STAFF from companies like TeamLease etc )
Business Line ( 16 Sept ) reports :
“ Yet , organized temp staffing is expected to touch 2.9 million by
2018 from 2.1 million a year ago , making India the third largest employer of such staff
after the US and Japan , where 7 – 11 per cent of the work force is under this
model “
Why such a sudden “ love “ for temps ?
Temps are not a permanent liability, governed by umpteen unwieldy
labour laws
They can be “ let go” , if there is a downturn in business (
without inviting problems associated with retrenchment related laws )
May be , such TEMP STAFFING is neither governed by Contract Labour ( Abolition and
Regulation ) Act - which carries
onerous conditions in respect of wages to be paid / absorption into permanent
cadre after continuous service of 11 months / leave ..etc !
Just pay some , mutually agreed upon lump sum for an OUTCOME ( -
and not hours worked , with or without outcome ! )
I suppose the TEMP STAFFING providers take care of all of these
headaches , leaving the business free to focus on its core activities
It is not difficult to see why our SERVICE SECTOR is growing at a rapid pace
Because , it is largely consists of SELF EMPLOYED , who
·
Deliver to you their services at your home for a lump sum
·
Need very little CAPITALINVESTMENT to create a job for themselves
Here are a few examples :
Cook / Carpenter / Driver / Electrician / Florist / Housemaid
/ Housekeeper / Yoga Instructor / Tutors / Maid / Nurse / Painter / Personal
Trainer / Physiotherapist / Plumber
/ Repairer / Singer / Social Worker / Street vendor / Delivery Boys / Cleaner /
Mason / Scrap Collector etc
When will our
Policy Makers realize that they need to
:
·
stop
chasing the MIRAGE of
MANUFACTURING
·
just get out of the way of the Self
Employed by trying to “ regulate “ their businesses
·
encourage
temporary employment by abolishing the Contract Labour ( Abolition and
Regulation ) Act
·
Totally re-write the Apprentice Act /
Factory Act
·
Introduce “ Human Enterprise Act “ which
turns our economy around by making it a “ Low Cost Economy “
·
Make
India , the “ BackFactory of the World “
·
First
“ CreateWealth to Create Jobs “
This
is the STIMULUS PACKAGE that will revive our economy
23 Sept
2017
www.hemenparekh.in / blogs
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