Effect of application of modern Scientific Methodologies on employment

24 Apr '08

2 min read

Large organised establishments prefer to go in for capital-intensive technology of production in order to raise productivity level so as to be more competitive in the market and for maximizing their profitability.

This is corroborated by data published by the Annual Survey of Industries that showed the decline in absolute number of persons engaged in organized manufacturing sector from 9.54 million in1996-97 to 7.87 million in 2003-04 when average annual growth rate of Index of Industrial Product (IIP) was 5.5 per cent and such growth of manufacturing sector was even higher than 5.9 per cent.

Further, the employment intensity of registered units also indicates that an investment of Rs 0.72 lakh is required for creating of one employment in micro, small and medium enterprises sector as against Rs 5.56 lakh in the large organized sector.

The Eleventh Five Year Plan maintains that the additional employment opportunities in the future will be generated mainly in the services and manufacturing sectors, in particular, labour intensive manufacturing sectors such as food processing, leather products, footwear, and textiles, and services sectors such as tourism and construction. Economic growth in different sectors is normally accompanied by growth in employment opportunities as well.

This information was given by the Minister of State (Independent Charge) of the Ministry of Labour and Employment, Shri Oscar Fernandes in a written reply in the Rajya Sabha.

Press Information Bureau Government of India

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