PLI drives record job growth in India’s manufacturing sector, says Goldman Sachs | Economy News

Economy News

While IT and services continue to lead employment generation in India, manufacturing has emerged as a formidable contender in India’s job creation story, according to a Goldman Sachs report.

New Delhi: US brokerage Goldman Sachs has highlighted the role of capital intensive in job creation in India. The financial services giant in its latest report attributed job growth over the past decade to electronics and chemicals apart from machinery. The Centre’s focus on Make in India has led to a surge in capital-intensive industries in India.

The emphasis on assembly of electronics goods, machinery as well as pharma products has led to double digit growth in exports to developed countries, according to the report. This is directly related to India’s efforts to diversify its export basket by adding high value products.

Capital intensive sectoral expansion has outpaced labour intensive sectoral expansion in recent years, Goldman Sachs noted. Capital intensive sectors are defined as those whose share of capital income is 0.65 per cent or more. Meanwhile, labour intensive sectors in India include textiles, footwear as well as food and beverages.

What led to jump in capital intensive industry?

Goldman Sachs credited India’s production-linked incentive schemes for emerging as catalysts to drive up manufacturing in the country. PLI has also fostered advancements in technology besides inviting more investment from abroad as well as from domestic sources.

Goldman Sachs shared its findings from the Annual Survey of Industries in India, the ANI reported. The organised machinery employed 17 million workers, equalling 28 per cent of India’s total manufacturing workforce in FY2022.

Job status in India’s labour intensive sector

To be sure, labour-intensive industries continue to lead employment generation in India with 11 per cent employed in the food products sector and 10 per cent in the textiles sector. The construction sector employed 13 per cent of India’s workforce, according to the survey.

Status employment in India’s IT and services sectors

The Services sector led by business and retail comprised 34 per cent of total jobs in India. However, this lagged the sector’s 54 per cent contribution to India’s gross value added. Meanwhile, India’s IT industry is credited with creating 1.9 million jobs over the past 8 years with overall figures standing at 5.4 million, the ANI reported citing Nasscom data.

 

The writer is a business and opinion journalist with over 8 years’ experience in print and digital journalism. He is focused on simplifying business concepts for readers and offering news that you can use. He also covers auto sector news for this publication.

Read More

Next Article

Source link

  • Related Posts

    Influenza Vaccination: Fortis expert explains why it is a must even for the elderly | Health Conditions News

    Health Conditions News Despite the clear benefits, vaccination hesitancy remains a challenge. Misinformation and misconceptions about influenza vaccines contribute to vaccine refusal. It is essential to provide accurate and …

    Read more

    Pancreatic cancer diagnosis: Why early detection is a must for this painful tumour | Health Conditions News

    Health Conditions News Pancreatic cancer is difficult to identify in its early stages. There is currently no standard diagnostic instrument or early detection procedure for pancreatic cancer in the …

    Read more

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Hyderabad: Bandh in Shamshabad over temple vandalism | Hyderabad News

    Hyderabad: Bandh in Shamshabad over temple vandalism | Hyderabad News

    Sexual assault case: Nivin Pauly given clean chit by police; cites lack of evidence | Kerala News

    Sexual assault case: Nivin Pauly given clean chit by police; cites lack of evidence | Kerala News

    Tension in Bangladesh’s Chittagong after controversial Facebook post against Hindus, ISKCON | World News

    Tension in Bangladesh’s Chittagong after controversial Facebook post against Hindus, ISKCON | World News

    New PM E-DRIVE Scheme Boosts Electric Two-Wheelers, Snubs Electric & Hybrid Cars | Auto News

    New PM E-DRIVE Scheme Boosts Electric Two-Wheelers, Snubs Electric & Hybrid Cars | Auto News

    Taking 20 wickets to be a hurdle for India, Australia will win 3-1, says Ponting | Cricket News

    Taking 20 wickets to be a hurdle for India, Australia will win 3-1, says Ponting | Cricket News

    ICC Test rankings: Rishabh Pant enters top 10 after twin fifties in Mumbai Test | Cricket News

    ICC Test rankings: Rishabh Pant enters top 10 after twin fifties in Mumbai Test | Cricket News

    Cabinet clears Rs 10,700 crore fund infusion into FCI in boost to agrarian economy | Biz News

    Cabinet clears Rs 10,700 crore fund infusion into FCI in boost to agrarian economy | Biz News

    Apple Fined By EU For The FIRST Time, Here’s Why | Tech News

    Apple Fined By EU For The FIRST Time, Here’s Why | Tech News

    ‘No more wars’, assert US President elect Donald Trump in his victory speech | World News

    ‘No more wars’, assert US President elect Donald Trump in his victory speech | World News

    ICAI CA Final November 2024 exam postponed in these states due to elections | Edu News

    ICAI CA Final November 2024 exam postponed in these states due to elections | Edu News