Namrata Kath Hazarika | 08 Sep, 2009
Acknowledging that the SME sector is one of the priority sectors for the government, Harish Rawat, Minister of State, Ministry of Labor and Employment said that Prime Minister, Manmohan Singh has a personal choice for the development of this sector.                                                                                                                                                                      Excerpts of the interview...

What is the government planning for the development of unemployment in the country?
Harish Rawat: Both the private and government organized sectors have very limited jobs. The rest is the unorganized sector. We have focused and introduced laws mostly for the unorganized sector in the Parliament. In fact, 90 percent areas are from the unorganized sector. In the national level, we are planning to set up National Social Security Board and in the state level we will set up state security board. We are also planning to focus on the unorganized sector and develop new programs for the workers related to sectors such textiles, gems & jewelry, leather, etc. Funds will be given and decided according to the requirements.

In the coming years, there will be an increase in the unorganized sector. Our yojnas such as Bharat Nirman Yojna, NREGA, etc, the government is planning to increase the investment target.

Moreover, focus will also be maintained in housing activities. We have commitment that within another 5 years, we would be able to give shelter to those people who do not have roof to protect themselves. We are committed to give those people one-bedroom house with attached bathroom and kitchen. This will be given via Indira Gandhi Awaaj Yojna.

This will help in expansion for the unorganized sector. We are focusing on that. We have also increased the target in our Swarojgar Yojnas such as in the Swarnjayanti Gram Swarozgar Yojana (SGSY).

In Khadi Gram Udyog Yojna, much focus has been given on the Small and Medium Enterprises (SMEs) which will help this sector immensely. For Handicraft & Handloom sector, the government has requested for cluster development. In fact, we have a target that by the 2010 we will be able to achieve 1.2 crore additional jobs in the country.

Is India facing huge talent deficit? What is the government doing in this regard?
Harish Rawat: We don't have crisis of talent in India but we lack to organize and augment the talent in our country. At present the problem is that our trained manpower is limited. We need to focus on that. Around 60 percent of children are not progressing from High school. Almost 80 percent are not going forward from intermediary.

In fact, in technical grounds, children are not efficient enough, which also requires some attention and improvement. In this regard the government is facilitating the "Skill Development Initiative" for their progress. Our ministry has a target that 50 crore people will get modular employable skill. We have introduced a 19-hour course in this initiative, which includes diploma courses as well.

How are you planning to motivate growth prospects in India?
Harish Rawat: We have a target of opening up 1500 new ITIs, 5,OOO skill development centers in both urban and rural areas, on which we have already requested the proposal. Few projects have already been started. We have plans of setting up 50,000 skill development centers all across the country. Moreover, including the Ministry of Labour, there are 17 additional ministries which are working jointly for the progress of the initiative that includes Ministry of Finance, Ministry of Micro, Small and Medium Enterprises, Ministry of Heavy Industries and Public Enterprises, Ministry of Human Resources, etc.

By 2022, we will have 4.6 crore technically skilled manpower worldwide. However, we expect to generate around 5 crore technical skilled manpower in India by that time. We want to take the advantage of the crisis of skill manpower all across the world. The skill development initiative will have a major impact on the improvement and development of the country.

Is the Government continuously watching the effects of the employment situation due to economic slowdown in India. What is the present status?
Harish Rawat:As compared to other countries, India is insulated from the present economic crisis. Demand in the rural market has not decreased; it is still present in the rural areas. There is a wide scope and opportunity in the rural markets. We have a large population in India which comprises the rural market. So, it is possible that rural market can bring a boost to the economy if it is captured by our enterprises and industry. In fact, if half the market is covered and demand is created it will surely boost the economy to a great extent.

The government is doing its job to improve the rural markets. The government has increased the MSP (Minimum Support Price), there has been recommendation from the government in this regard. Such initiatives by the government have helped to retain the industrial production which did not decrease and have also protected the job market.

The first survey in the second quarter of the fiscal 2008 revealed that there was about 5 lakh job loses. However, in the second survey after the three stimulus packages were announced by the center, there was some recovery and 1.2 lakh job loses have been reported. Moreover, in the third survey, few areas have witnessed job loses in sectors such as textiles, leather, etc, but there is an improvement in contractual labour.

In addition, there was sharp decline in the middle of fiscal 2008 and starting of fiscal 2009. There is no further decline as of now. There is reports of improvement in few sectors such as construction, steel, etc. In fact, after October there will be improvement in the service sector as well.

What is the employment opportunity in some of the labour-intensive sectors such as textiles, metals, leather, automobiles, Gems & Jewelery, Transport, and IT/ BPO?
Harish Rawat: These are mostly export-oriented sectors. Today job loses that were witnessed in the last couple of months were not due to the lapse in government policies or any particular reason but because of dwindling demand, especially in major overseas markets. The crisis occurred because of the slack in demand in the key export market such as US and Europe, who were our buyers. That is why, labour-intensive sectors such as textiles, metals, leather, automobiles, Gems & Jewelery, Transport, and IT/ BPO have been affected.

The government has announced slew of measures to bring the economy back on track recently. The government will do its best to mitigate the trouble which the industry has been facing since past couple of months. For instance, the recent three stimulus packages, the general Budget & many others steps have facilitated the industry to nullify the affects of global slowdown to some extent. So, the government has decided that both the traditional and non-traditional market should be explored by the industry in the midst of the slowdown.

Even in the manufacturing side, the government has already implemented a lot of measures so that the purchasing power of consumer can be retained. The purchasing power in rural market should be retained. In fact, the Bharat Nirman Yojna, NREGA, etc. has helped to keep the cash flow intact.

As compared to other countries India is insulated from the present economic crisis. The demand in the rural market has not decreased. Demand is still present in the rural market.

However, once the demand is there, then the production is there and once production is there, jobs will automatically be present in the market. In fact, the Yojnas like NREGA and the sixth pay commission have greater importance in the midst of the crisis. In fact, the government has increased the investment in the rural market via different Yojnas.

Could you highlight on what the Eleventh five year Plan comprises for generating new employment opportunities in India?
Harish Rawat: As I have mentioned earlier, in the Eleventh Five Year Plan, we have targeted to achieve 58 million additional jobs in the country.

Child labour is another issue in India currently. What are the causes of child labour in India?
Harish Rawat: We have laws on child labour. We are trying our best to answer this issue. Already 5 lakh child labourers have been removed and rehabilitated as well as given an opportunity to receive formal education. The problem today is not to bring out children from working at a tender age but also make sure they do not return back to the same job. Such conditions arise due to the poor economic conditions of the family they belong to. Currently, this is one of the major problems the government is facing.

How do governmental policies affect it? What role does education play in regard to child labour in India?
Harish Rawat: In order to generate awareness against child labour, we are trying to develop check bonds. Everybody know the areas from where these children are brought in to work. We are trying to focus on those areas. We are also involving the panchayats, NGOs in this regard. We are also viewing the socio-economic conditions. There is a need to work a lot on the issue of child labour. However, the funds that are given and the initiatives taken on child labour are very less.

The low level of female literacy continues to be a matter of grave concern. The General Budget announced the decision to launch a National Mission for Female Literacy, with focus on minorities, SC, ST and other marginalised groups, which further aims to reduce female illiteracy by half in three years. What is your take on this?

Harish Rawat: If we can increase the female illiteracy rates in the country, it will have positive impact in all the programs and Yojnas introduced by the government. That is a big mission. This will help and increase female literates in the country. The next Five Year Plan will really help the female education system. But it will take some time.

Are you focusing on the SME sector?
Harish Rawat: The SME sector is one of the priority area. It is also a focus area in the 11th Five Year Plan. In fact, Prime Minister, Manmohan Singh has a personal choice for the development of this sector. We are giving special attention to SMEs.