Tackling unemployment
Here is an action plan that may be useful to kick start Indian economy by creating manufacturing capacity and absorbing skilled workers.
1. Identify specific products for fulfilling basic needs in all possible fields including armaments manufacture.
2. Commission design teams from government labs to design prototypes. (These labs cover almost every conceivable field but their successes so far remain less than apparent.)
3. Successful public/professional private sector companies must be given the responsibility for prototype manufacturing, evaluation, improvement and mass manufacture preferably in greenfield factories.
4. Set up medium scale ancillary industries within manufacturing parks, which would be the key to providing jobs close to the manufacturing centre and arrange for supply of quality raw materials to these industries.
5. Identify banks for capital financing and working capital loans for the ancillaries. Provide mechanism for individual small investors to participate in specific medium scale industries as part owners (limited to 5%) who will participate financially without going through the highly volatile stock market.
6. Provide support for these medium scale industries in Incorporation, financial management, setting up production and quality systems, accounting practices, compliance machinery and standardised IT assets through qualified professionals and various institutes of management / engineering.
7. Ensure administrative support to ward of undesirables like self-styled labour leaders by banning union activities (on lines similar to tech parks).
8. Set up a mechanism to ensure prompt payments for supplies made (because many medium industries die due to fund flow constraints caused by delay in payments for products supplied).
9. Set up these industrial/tech parks in less developed areas to provide employment for nearby communities while at the same time developing infrastructure to support them (skill training, power, roads, water, communication).
10. Prevent all political and official interference for private gains in the affairs of these medium scale industries including forced political donations.
Concrete steps and political will are needed to improve ease of doing business. At the same time, entrepreneurs must also be sensitised to the need for law-abiding behaviour and not try to evade taxes and other government levies or indulge in fraudulent practices in their own long term interest. more
Education is important at a basic level (the 3 R's). But skills are more important to solve unemployment. Today much of our college education is pretty much useless from employability point of view. We must understand that everyone is not created with equal competence in everything. Opportunity must be given to every child to do what they are good at and contribute to society. more