Employment and Self-Employment - Yojana September 2018 Summary (Part - 3) (Download PDF)

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Fixing India’s 3Es: Political stories spectacularly delivered but economic stories targeted symptoms of poverty rather than disease of productivity by distrusting decentralization (strong states lead to weak nation), disrespecting institutions (corruption & informality cultural) & sabotaging competition (public sector entities & monopolies better for consumers).

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Employment and Self-Employment - Yojana September 2018 (In English)

Dr. Manishika Jain in this lecture explains Employment and Self-Employment - Yojana September 2018

  • India’s 3Es of education, employability, & employment – crucial part of raising our productivity & putting poverty in museum that it belongs.

Formalization

  • India’s entrepreneurship ecosystem seems healthy; 50% of our labour force self-employed, we have one enterprise for every four non-farm workers.

  • India’s 6.3 crore enterprises, 1.2 crore not have office, 1.2 crore work from home, 70 lakh had tax registration pre-GST, only 14 lakh make mandatory employer social security payments, & only 10 lakh incorporated as companies.

  • India stack for all employer-employee & employer – Govt. interface by moving all laws to paperless, presence less & Cashless.

Urbanisation

  • India has only 50 cities w/more than million people; China has 375. We have 6 lac villages of which 2 lac have less than 200 people; there is no way they can become job magnets.
  • Industrialisation
  • India has too many people on farms (50% of our labour force), too many people self-employed (50%of our labour force), & too little people in manufacturing (11% of labour force).

Financialisation

  • Radical disruption in favour of financialisation demonetisation because it created 18 lac crore New Lending Capacity, 15 crore New Monthly Digital Transactions, 3 lac crore New Financial Savings, lower Interest Rates.

    Harnessing the Demographic Advantage

  • India passing thru demographic transition, which makes India youngest nation in world w/average age of 29 years.

  • Economic Survey 2016 - 17, for first time since 1950 combined working age (WA) population (15-59) of advanced countries declined w/both China & Russia experiencing fall of 20%in their working age population individually, India currently w/around 28% population in youth category witnessing increase in its working age population which may saturate by 2040.

  • India Skills Report 2018, brought out by Wheebox, indicates only 46% of youth coming out of higher educational institutes employable

  • Skill Gap Study by NSDC estimates incremental human resource requirement of 109.73million skilled manpower by 2022 in twenty-four key sectors of economy.

Major Challenges

  • Large pool of poorly educated youth

  • High demand for skilled manpower vis-a-vis low employability

  • Skilling formal school dropouts to provide second chance to acquire basic numeracy, literacy, & functional skills for accessing jobs in formal sector.

  • Unequal distribution of training capacities vis-à-vis youth demographics.

  • Availability of good quality trainers due to lack of focus on development of trainers’ training programmes & career progression pathways for them.

  • Multiplicity in assessment & certification systems leading to inconsistent outcomes & confusion to employers.

  • Preponderance of unorganised sector & mapping of existing skills & skills required.

  • Achieving convergence & coordination across sectors.

Broad basing National Policy

  • National Policy on skill Development 2009 revisited & new policy w/focus on entrepreneurship launched in 2015- “National Policy for Skill Development & Entrepreneurship 2015”. Policy redefined vision for skill India in terms of creating ecosystem of empowerment by skilling on large Scale Speed w/high standards & promote culture of innovation based entrepreneurship which generate wealth & employment ensure sustainable livelihoods for all citizens in country.
Image of Ministry of Skill development and Entrepreneurship

Image of Ministry of Skill Development and Entrepreneurship

Image of Ministry of Skill development and Entrepreneurship

Systemic Interventions

  • Labour Market Information System (LMIS), integrated database put in place to make available both demand side & supply side information at one place including trends in wages.

  • Workers in labor intensive sectors – Construction, Agriculture, Domestic work, Healthcare & Gems, & jewellery likely to biggest beneficiaries.

  • LMIS integrated database put in place to make available both demand side & supply side information including trends in wages; focus areas for skilled manpower, occupational shortages etc.

  • Over 5,000 ITSs & 15,000 training centres graded on parameters including infrastructure, equipment, trainers & past performance linkages to help identify quality differential among training centres.

Formalizing Informal Skills: Recognition of Prior Learning (RPL) & Apprenticeship

  • Countries around world implemented apprenticeship model- Japan over 10 million apprentices, Germany has 3 million & USA 0.5 million while India has 0.3 million apprentices.

  • Apprenticeship Act, 1961 amended in 2014 to enhance scope of apprentices in non-engineering trades & offer industry optional trades.

Making India Skill Capital of World

  • UP witnessed highest emigration w/ 25% of total workers migrating out of India for skilled & unskilled work belonging to state.

    Fuelling Growth in Micro Entrepreneurship & Employment

  • Large number of small business units, estimated at around 5.77 core in informal sector

  • Pradhan Mantri Mudra Yojana (PMMY) launched in 2015 w/objective of funding the unfunded.

Impact on Employment

  • PMMY loans increased availability of credit at bottom of pyramid.

  • It also provided platform for new entrepreneurs to flourish 28 % of PMMY loans extended to new entrepreneurs.

Beyond Money: Creating Positive Lending Ecosystem 📝

  • Portfolio Credit Guarantee

  • Refinance

  • Mudra Card

  • Credit Histories

  • Catalysing change in MFI space

  • Loans, not Grants

Linking w/value Chains

  • Interconnections various data collection points viz; Trade receivables Discounting System (TReDS), Govt. e-Marketplace (GeM), GST, IT Returns etc. in turn, formalize & ensure ease of borrowing.

MSMEs: New Engines of Growth & Employment

  • MSME Sector: Employment Generation
  • Micro, small, & Medium Enterprises contribute significantly to total industrial activity in country & play a vital role in boosting employment generation. Currently, exist over 7 crore MSMEs create 12crore jobs in country across various types of enterprises.

Agenda for Action

  • Encourage growth in labour- intensive industries

  • Improve quality of training imparted in schools, colleges & universities by setting up innovative labs

  • Enhance labour productivity by adopting best practices

  • Ensure timely credit flow

  • Facilitate good market access.

Focused Approach

Ministry of MSME focused approach towards providing support to entrepreneurship for realizing vision of India becoming nation of job creators rather than job seekers.

National Scheduled Caste/Scheduled Tribe Hub (NSSH)

  • Launched by PM in 2016 - focus on promotion of entrepreneurship among SCs & STs communities.

  • Entrepreneurial Skill Development Programme (ESDP) aims at skill upgradation of prospective entrepreneurs; Management Development Programmes (MDPs) objective of impacting training on management practices to improve decision-making capabilities of potential entrepreneurs etc.

  • Major initiative of Govt. in MSME sector enhancement of Credit Guarantee Fund (CGTMSE) from Rs. 2500 crore to more than Rs. 8000 crore envisaged to facilitate unprecedented credit flow into micro & small enterprise sector during 2018 - 19.

  • MSME Ministry launched new scheme- Mission Solar Charkha it is envisages to set up 50clusters in first phase giving employment opportunities to nearly 1 Lakh people in rural areas mostly to women.

Employment- Indian Perspective

  • Labour Market: Structural Rigidities
  • Unemployment problem challenging in India because it emerges from structural rigidities of labour market, scarcity of capital & low skill levels of labour force.

Critical Issues

  • According to International Labour Organisation (ILO) report, employment elasticity of Indian economy 0.15%, GDP growth not lead to commensurate.

Addressing Labour Market Rigidities

  • Govt. launched its ambitions scheme of MUDRA (Micro Units Development Refinance Agency) to provide collateral free loan of Rs. 50,000 to 10 lakhs for non-agricultural purpose.

Employment Generation thru Ease of Doing Business

  • Under rubric of ‘ease of doing business’ (EODB) Labour Ministry undertaken number of steps to reduce compliance burden of industry.

Quality Vs Quality of Jobs

  • 93% of India’s labour force works informally 80% of it works in informal sector & remaining employed informally in organised sector of economy.

Road Development: Indirect Employment Opportunities

  • National Highway Development Program (NHDP), started w/Golden Quadrilateral in 1998, followed by N-S & E-W Corridors in 2000, mainstay of Indian Highway success story over past decade & half.

  • Road development Programme of MoRTH, mentioned above, expected to significantly boost investment in sector & create large scale employment opportunities across entire value chain of highway construction.

  • Increased emphasis on use of technology LiDAR (Light Detection & Range) in preparation of DPR for more accurate project designing led to spurt in demand for manpower trained in remote sensing applications.

  • RPL part of PMKVY, flagship scheme implemented by MSDE to train 10 million youth by 2020.

  • Successful candidates issued certificates by National Council of Vocational Training (NCTV), which duly recognized certification body thru scheme Ministry targeting to skill 1 Lakh workers.

Dimensions of Indian Labour Market

  • Global unemployment levels projected around 201 million, which 31 million in 2015 & by further 8 million in four years.

  • Volatility of smaller establishments & migration makes employment market more complex.

  • From 2004 - 05 to 2011 - 12, 1.8 million persons joined labour force each year & equal number gained employment whereby unemployment rate stayed nearly constant at 2.2%.

Encouraging Private Investment in Industry 📝

  • Policy ecosystem evolved around:

    • Make in India

    • Skill India

    • Digital India

    • National Manufacturing Policy 2015

    • Ease of Doing Business

    • Atal Innovation Mission

    • 100 Smart Cities & 500 Amrut Cities Project

    • Start-up India

    • Stand-up India

  • Demand side reinforced by providing incentives to agro-based industries, labour-intensive industries like textile & leather, increasing public investment in education & health etc.

Enhancing Skill Base of Workforce

  • National Skill Development Agency (NSDA) under MSDE coordinates & harmonies skill development efforts of Govt.

Labour Law Reforms

  • Broad objectivities of labour reforms include reducing uncertainty & complexity in labour legislation; creating robust & comprehensive floor of rights; modernizing dispute resolution & enforcement systems for good governance.

Mainstreaming Informality

  • 👌 Govt. announced three social Security Schemes pertaining to Insurance & Pension Sectors, Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) & Atal Pension Yojana (APY) move towards creating a universal social security system, focused especially at poor & under privileged.

  • As per information available from EPFO, average over 8600 establishments newly registered on monthly basis from 2017 to 2018 & over 85000 new employees joined in establishments each month during same period. Over 10,00,000 new Universal Account Number (UAN) linked employees joined EPFO ecosystem each month during 2017 to 2018.

Active Labour Market Policies (ALMPS)

  • Allocating adequate budgetary resources to ALMPS reported desirable as studies shown that can improve employment outcomes.

  • Undertaking impact evaluations important in developing evidence-based approach to policy design.

Conclusion

  • Enhancing coverage of EPFO & ESIC to other areas & schemes like PMRPY encourages transition to formalization of economy & labour market.

  • Identifying & formalizing changing context & forms of work (fixed term employment) assist in strengthening employment market another step encourage innovative solutions to address employment challenges.

    Creating New Job Ecosystem

  • According to World Bank’s “Global Economic Prospects- A Fragile Recovery” report, India achieved fastest growth rate among major economics in 2017 expected to achieve growth rates of 7.5% & 7.7% in 2018 & 2019.

    A Snapshot of “Future of Jobs” in organized sector in 2022

    Table of Future Jobs

    Table contain shows the For Future Jobs

    Table contain shows the For Future Jobs

    would be deployed in new jobs that do not exist today (projected for 2022)

    would be deployed in jobs that have radically changed skill sets (projected for 2022)

    will face an existential threat to their jobs (for 2017)

    10%-20%

    60%-65%

    20%-35%

    5%-10%

    50%-55%

    10%-15%

    5%-10%

    35%-40%

    15%-20%

    15%-20%

    55%-60%

    20%-25%

    5%-10%

    20%-25%

    15%-20%

  • India third largest startup ecosystem in world today w/ 26000+ new startups w/ISD 90bn worth of value creation.

  • Advanced humanoid robot ‘Sophia ’ recently given citizenship by Saudi Arabia, Hadrian X- Australian based robot that completes tasks meant for three four human bricklayers, Tally- world’s first fully autonomous self-auditing & analytics-based robot ensures goods adequately stocked, placed & priced & Tesla’s new $5 billion Giga-100% automated factory w/limited human intervention.

  • India, its own robot Lakshmi in Union Bank, Chennai, who greets & welcomes customers making front desk officers redundant.

  • Analysis of skilling/reskilling programme of IT-BPM firms in 2017 indicates more than 50%of workforce of large sized firms (revenue more than US $1 billion) already trained in digital technologies; for medium firms, 33%-35% & for small firms, 38% of workforce reskilled.

  • MUDRA & PMMY programme helped 7.50crore loan accounts to avail of credit exceeding Rs. 3.17Lakh crore.

  • Other Important Notes

  • Pravasi Kaushal Vikas Yojana (PKVY)

Short-term program (2 weeks to one month) prepare candidates holistically in taking up challenging assignments in different countries w/confidence & meet transnational skill requirements.

  • NCS Platform

    • National Career Service Platform

    • Provides career related service to job seekers, counseling services; call centres; Model Career Centres; rich repository of career content, capacity building, & other facilitation services.

    • Provides variety of employment related services like job matching, e -linking all employment exchanges & organising job fairs on regular basis.

    • 2200 Job Fairs organized & 30.2 lakhs jobs offered thru NCS portal.

  • Shram Suvidha Portal

    • Launched in 2014 as one stop shop for labour law compliance.

    • Portal accessible at https://shramsuvidha.gov.in/home provides multitude of services unified registration, licensing, & return services for establishments of EPFO & ESIC as well as CLC (C).

    • Establishments can file annual returns under three rules for mines factories act.

    • Portal facilities transparent risk based inspection by labour enforcement agencies.

  • ASPIRE

    • Set up business incubators eligible youth adequately incubated in various skills & provided opportunity to set up their own business enterprises.

    • SERUTI

    • Organize traditional industries & artisans into clusters to make them, competitive & provide support for their long-term sustainability.

    • MUDRA

    • Micro Units Development & Refinance Agency Limited (MUDRA) set up for ‘funding unfunded’ micro enterprises in country.

    • refinance all banks, Micro-finance institutions (MFIs) & other lending institutions, which business of lending to micro/small business entities, engaged in manufacturing, trading & services activities.

  • MUDRA MITRA

    • Mobile phone application available in Google Play Store & Apple App Store, providing information regarding MUDRA & its various products/schemes.

    • Employment Avenues for Differently Abled

  • Act (Rights of Person w/Disability Act 2016) increased job reservation from 3 to 4% for people w/disabilities.

  • Transport allowance at double normal rate for employee w/Hearing Impairment effective since 2017.

  • Govt. established special employment exchanges for persons w/disabilities in state capitals & special employment cells set up in all district headquarters for recruitment posts reserved for persons w/disabilities.

  • Scheme of National Awards for empowerment of Persons w/Disabilities.

  • Ministry of Petroleum & Natural Gas reserved 7.5% of all types of dealership agencies of Public sector oil companies for persons w/physical disabilities.

  • National Handicapped Finance & Development Corporation (NHFDC): functions apex institution for channelizing funds to persons w/disparities thru State Channelizing Agencies (SCAs) nominated by State Govt.

  • Persons w/disabilities eligible for income tax deduction under Section 80U.

  • Skill Council for Persons w/Disabilities (SCPwD) promoted by Confederation of Indian Industry (CII) under MSDE & Ministry of Social Justice & Empowerment.

  • Prerna marketing assistance scheme of National Trust w/objective to create viable &widespread channels for sale of products & services produces by PwD covered under National Trust Act.

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Employment and Self-Employment - Yojana September 2018 (In Hindi)

Dr. Manishika Jain in this lecture explains Employment and Self-Employment - Yojana September 2018

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- Published/Last Modified on: September 28, 2018

Yojana

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