Gujarat Has Created Most Manufacturing Jobs

[dray]

There is no doubt that India needs to do a lot of ground work if it wants to become a manufacturing powerhouse a la China. That said, if one were to do a comparison among various Indian states, some of them have done quite well on this front, while others have significantly lagged behind. Why the difference? The answer lies in labour laws. Indeed, it is quite well known that India labour laws have been quite rigid. This is because employers do not have the flexibility to fire workers unless various conditions are met. Moreover, they have the wrath of the labour unions to contend with. Thus, it comes as no surprise that a report by Goldman Sachs and published in Firstbiz has highlighted that those states that are pro-employers have reported good manufacturing growth. This is as against those states that are pro-workers.

According to the report, Gujarat tops the list with an average employment of a little more than 350 per 1,000 people employed in manufacturing. This is between financial year 2004-05 and financial year 2011-2012 (April-May). In other words, states with flexible labour laws have reported higher increase in total factor productivity. Moreover, the younger set of workers prefers flexible job markets. This allows them to change jobs even if it means there is the likelihood of them being fired. Thus, it will be interesting to see how the new government will view this report and whether finally we will see some action in terms of reforming India's labour laws.

Gujarat Has Created Most Manufacturing Jobs - Chart Of The Day 29 March 2014 - Equitymaster

 

[Nexus]

That's right my city rajkot have population of 13-16,00,000 but out out side of city is look like special economic zone really modi did impressive work in Rajkot.

 

[dray]

We really need to create more manufacturing jobs to provide employment for our huge number of unskilled and semi-skilled workforce.

 

[Nexus]

*off topic.* how are u sir @SarthakGanguly @Srinivas @Alpha1 @Armstrong ? i missed u guys maybe u goys forgot me but i still remember u coz u guys are stars of PDF !

 

[Armstrong]

*off topic.* how are u sir @SarthakGanguly @Srinivas @Alpha1 @Armstrong ? i missed u guys maybe u goys forgot me but i still remember u coz u guys are stars of PDF !

I'm fine, thank you !

No I didn't forget you....how are you doing ?

 

[Srinivas]

@Nexus How are you doing ???

Nice to see you here

 

[Reviewer21]

Gujju Bhai Zindabad!!

@DRAY True said. We already are best in service sector, by becoming manufacturing hub, India can surely become a Global Trade Hub for the world. Lets hope for the best

 

[Srinivas]

This is just election propaganda and selective journalism. I am afraid did any one questioned how many IT jobs are created in Gujarat??

On that note Karnataks ranks top most state.

Too much propaganda and selective journalism.

There is no doubt that India needs to do a lot of ground work if it wants to become a manufacturing powerhouse a la China. That said, if one were to do a comparison among various Indian states, some of them have done quite well on this front, while others have significantly lagged behind. Why the difference? The answer lies in labour laws. Indeed, it is quite well known that India labour laws have been quite rigid. This is because employers do not have the flexibility to fire workers unless various conditions are met. Moreover, they have the wrath of the labour unions to contend with. Thus, it comes as no surprise that a report by Goldman Sachs and published in Firstbiz has highlighted that those states that are pro-employers have reported good manufacturing growth. This is as against those states that are pro-workers.

According to the report, Gujarat tops the list with an average employment of a little more than 350 per 1,000 people employed in manufacturing. This is between financial year 2004-05 and financial year 2011-2012 (April-May). In other words, states with flexible labour laws have reported higher increase in total factor productivity. Moreover, the younger set of workers prefers flexible job markets. This allows them to change jobs even if it means there is the likelihood of them being fired. Thus, it will be interesting to see how the new government will view this report and whether finally we will see some action in terms of reforming India's labour laws.

Gujarat Has Created Most Manufacturing Jobs - Chart Of The Day 29 March 2014 - Equitymaster

 

[PoKeMon]

Modi certainly outperform other CMs in getting manufacturing to Gujrat but can he do the same at international arena. We have to see.

 

[Nexus]

I'm fine, thank you !

No I didn't forget you....how are you doing ?

fine and u ? i was not able to post here coz of long term 15 exams.

fine and u

@Nexus How are you doing ???

Nice to see you here

thanks i missed your posts.

 

[PoKeMon]

This is just election propaganda and selective journalism. I am afraid did any one questioned how many IT jobs are created in Gujarat??

On that note Karnataks ranks top most state.

Too much propaganda and selective journalism.

Why there is a need to question about IT? Its obviously not the best of sectors and highly susceptible for slow down.
Also manufacturing provide employment to most needful of society i.e. the bottom of chain.

 

[Srinivas]

Why there is a need to question about IT? Its obviously not the best of sectors and highly susceptible for slow down.
Also manufacturing provide employment to most needful of society i.e. the bottom of chain.

IT sector is the one sector which gave high GDP growth rate to India. India economy is 1.7 Trillion and IT services alone is generating more than 100 Billion a year with minimum investment.

Be it Manufacturing, IT they both depend on Global economy and fluctuate. Chinese also faced the slump in 2008.

 

[Nexus]

This is just election propaganda and selective journalism. I am afraid did any one questioned how many IT jobs are created in Gujarat??

On that note Karnataks ranks top most state.

Too much propaganda and selective journalism.

sadely there is No it jobs in gujarat. except capital.

 

[Kloitra]

This is just election propaganda and selective journalism. I am afraid did any one questioned how many IT jobs are created in Gujarat??

On that note Karnataks ranks top most state.

Too much propaganda and selective journalism.

Selective journalism? Most manufacturing jobs goes to semi/un skilled people. IT jobs goes to skilled. Guess who have larger proportion in India, and to what extent. Manufacturing jobs go to local people, for IT people from around the country.

 

[Srinivas]

Selective journalism? Most manufacturing jobs goes to semi/un skilled people. IT jobs goes to skilled. Guess who have larger proportion in India, and to what extent. Manufacturing jobs go to local people, for IT people from around the country.

Selective journalism only highlighting certain parts of Gujarat in which this state is doing well and largely ignoring other aspects. And then there are Modi worshipers who will carry on this propaganda.

Gujarat is just one state in India which ranks in top 5.