Friday, April 1 2005 16:03 Hrs (IST) - World Time -

India is looked upon as an emerging economy. After India opened up its economy nearly one and half decade ago, many changes have taken place. Though there is not a 'bee line' of foreign companies to invest in India, many Multi National Companies (MNC) did enter and many more are showing keen interest in doing business in India or with her. This did help in making Indian economy more vibrant.

India: An Emerging Market?

Opening up of economy may have brought prosperity in various degrees to many in India; there is other side to the Globalisation. Developed nations are looking at India (and China also) as 'Emerging Markets'. MNCs based in the west want a market to sell their commodities. They come to India to make business, to make money. They are not interested in welfare of the Indian society. They are not interested in creating jobs here. Actually creation of jobs is a side effect.

American and British companies want to save money that is why they outsource their work, because even intelligent labour in India is much cheaper. Outsourcing of jobs to India became a major issue in the last US Presidential election. This shows true face of western countries that propagate equal opportunities for all.

Has globalisation created more jobs?

It is true, globalisation has created many job opportunities, but they are limited to the IT and services sector. But millions of people lost their jobs in the name of 'cost cutting', 'downsizing', 'making a company more competitive and so on. A Similar scenario was observed in many parts of Europe after 1989. Unemployment rate is much high in new entrants in EU (Rumania, Poland etc) and the Situation in Asia and Africa is much worse.

With a population of over One billion, many languages, cultures, problem faced by India is big. India needs jobs created at many levels, in traditional as well as new industries. One needs special training to enter IT or Entertainment sector. But even today literacy rate in India is hovering around 50 per cent graduates are aplenty but they are not computer savvy. Semiskilled and unskilled people awaiting an opportunity are in abundance. What about them?

The scientist President's solution

Going by figures of planning commission of India, there is a need of 7.6 crore (76 million) jobs, which need to be created over next five years. How can India do that? President of India, a noted scientist himself, has offered a solution. According to him, textile industry, bio-fuel generation, wasteland development, water harvesting, recycling and bamboo cultivation, Fly-ash utilisation and health care and development of village knowledge centres, are areas, which should be probed to create jobs. They have potential of creating 5.6 crore (56 million) jobs in next five years. During the period new Government jobs will be around Two crore (20 million) at an estimate. Number of unemployed people, many of them young, who have registered their names at Employment exchanges is around Four crore (40 million). This is Governments' figure telling last year's situation, actual number can be very high considering there will be new addition in last few months. Number of those not registered with employment exchanges will be huge. So 76 million jobs will not be enough.

Jobs in rural India

For job creation India must focus on its rural part. India's rural area is totally neglected as far as health care is concerned. This sector can create jobs for over a 1.5 million doctors and paramedics. But of course, there is need of investment, because we need to build clinics, primary health centres and some kind of roads to reach these facilities.

Planting of bio-fuel plants on wasteland, processing the fuel, and water harvesting can go hand in hand. These inter related activities will boost agro sector and create millions of job opportunities in rural area. Utilisation of fly-ash for producing building material, bamboo cultivation, its commercial use are again labour intensive which can create millions of jobs.

What India requires is an appropriate technology to suit its needs rather than ultra modern or high technology. Information technology is essential. Take it to the rural area, where 70 percent of India's population lives. IT should serve small farmer of India. They are not interested in knowing what is happening at Wall Street. But they must know about new techniques of cultivation, weather and other related topics. A small farmer can't afford a computer and internet connection, but a village can, with Governmental support. That is where village knowledge centres can play a vital role. These centres should impart basic education to local children and should serve specific needs of the populi.

The Daunting task

Investment in all these sectors is the imperative part. Big corporate houses will not shed a Paisa unless they are sure of some profit. A developing nation like India needs money to feed its ever-growing population and have to spend heavily to safeguard her sovereignty. This paradox is taking its toll. Increasing number of malnourished children is just one example.

How Indian Government is going to face the challenge is the most important question. People at the helm need to take an innovative approach. There are many people and NGO's working in the abovementioned areas. The Government must pool their expertise. People's participation than private sectors' and Governmental support than interference are most crucial things. Government should provide money enough to run the show and make participants able to support themselves.

Presenting a budget is one vital instrument to lay down policies and specify thrust areas. But if proper action is not taken, it would be reduced to a mere annual economic paper exercise. Now people of India are eagerly waiting to see what Government is going to 'do'? Percentages, ratio to GDP are useless words for millions. They want simple jobs, which will bring joy to their lives.