Centre, States Push For Job Creation Via MSME
Not only the centre but now State governments are encouraging job creation in the MSME sector
It’s no secret that the Micro, small and medium enterprises (MSMEs) sector is now driving the creation of new jobs thereby contributing its bit in solving the unemployment issue in the country. Not just the central MSME ministry but now various State governments are joining hands to promote various schemes that will help create jobs in the MSME market.
For example, recently the Gujarat government has allocated Rs 730 crore as ‘capital incentives’ to more than 16,000 MSMEs. Odisha government too has announced the setting up of a state level banking committee to prepare credit plan to offer financial assistance to the MSME industry which will lead to the creation of additional jobs. The central government has already announced a booster package of Rs 6,000 crore for the textile sector which is an employment intensive sector.
The Prime Minister Kaushal Vikas Yojana (PMKVY) is already a success having provided placement to around 3 lakh in the past 10 months. In order to further the employment opportunities in India, the central government has already made it mandatory for all PSUs to make 20 per cent purchases from small businesses.
Other state governments are also channelizing their funds into MSMEs for further growth in job employment
The Prime Minister echoed the transforming nature of jobs in his Independence Day speech, “With the changes in demand and technology, the nature of jobs in our country has been changing. The Government has launched several new initiatives in the employment related schemes… Over the past three years, ‘Pradhanmantri Mudra Yojana’ has led to millions and millions of youth becoming self-dependent. It’s not just that, one youth is providing employment to one, two or three more people,” he said.
As is known under the Mudra scheme, 7.46 crore loan accounts have been opened for small entrepreneurs between 2015- 2017 by banks and others.
The number of job seekers entering the job market every year in India is around 1.2 crore as against the 0.5 crore jobs available every year. Experts say The MSME segment is set to be the most potential job providers in the country.
Shashi Singh, Chairperson of Consortium of Women Entrepreneurs (CWEI) said, “The government is skilling the individuals of the society in order for them to get the jobs, but there are no jobs available. The scarcity of job opportunities promotes migration and exploitation. Thus, prior to skilling, the government should promote entrepreneurial skills so that the citizens not only find themselves a source of income but help others find employment.”
The Modi Government promised to provide jobs to the country’s youth in 2014 and has been since promising in all state elections. Recently, the Ministry of Labour and employment stated that the National Manufacturing Policy of the Government targets to create 10 crore jobs by the year 2022. And, the new Scheme “Pradhan Mantri Rojgar Protsahan Yojana” initiated by the Ministry in the year 2016-17 for incentivizing industry for promoting employment generation has allocated Rs. 1000 crore.
Multiple schemes such as Make in India, Skill India, Digital India were implemented to enhance the employment base. While many promises were made, many schemes were implemented; the scale of employ ability remains low and unsustainable.
Top themes and market attention on: