[Solved] Can the strategy of regional resource-based manufacturing help in promoting employment in India? ( UPSC GS-1 Mains 2020)

A local resource-based approach applies a cost-effective use of local skills, enterprises, labour and materials in the infrastructure delivery process. The process optimizes the social and economic impact of investments in manufacturing by ensuring that these investments are channeled through the local economy, thereby creating job opportunities and stimulating local markets, entrepreneurship and industry while safeguarding cost effectiveness, quality and sustainable asset delivery.

Reason for Opting for local resource-based technologies

 •Government development objectives aim to generate employment and income opportunities for the local population and domestic industry.

•The infrastructure concerned requires relatively modest investments, e.g., rural roads, secondary and tertiary irrigation channels and small and medium-scale structures.

•Local resources including labour, skills, enterprises and materials are available.

•Scarcity of foreign exchange makes the use of imported inputs an economically unattractive option. •A significant proportion of the population is un or under-employed

 •Wage levels are low.

 How it can help in promoting employment in India?

 •Local resource-based approach is to deliver public (and private) investments in infrastructure as a means of expanding employment opportunities for the unemployed, raising productivity, providing social and economic infrastructure assets and facilities, permitting trade and generally improving well-being.

•Given the relative scarcity of capital and skilled labour, and the relative abundance of unskilled labour, countries with low incomes can rapidly achieve pro-poor growth by applying employment friendly technologies in as many sectors as possible. This would rapidly increase the demand for unskilled and low-skilled labour.

Resource based approach :  Focus on specialisation

With primary focus on particular type of resource, people with specific skill set are required to work in such industries. This will create demand for people with that particular ability to get employment.

Ex: Alcohol distillery and manufacturing.

Cost cutting

By locating industries to the source location, the companies can cut costs from transportation. The money saved from transportation can be used to hire more capable employees.

Resource based approach :  Creating supplementing Industries

When a large industry of a particular kind is set up, various small industries in form of MSME’s are established that act as suppliers of smaller items required by the larger industry. These small industries create large number of employment.

Ex: Gurugram in Haryana is dedicated to automobile manufacturing. The presence of automobile manufacturing has enabled smaller industries to develop, which supply smaller items like nuts, axles, cranks etc to the large Industry.

•Several investment programmes have a huge employment creation potential, if delivered via employment-friendly  technology and local enterprises. Investment in public infrastructure accounts for as much as 40 to 60% of national public investment in most developing countries. Public investment programmes, therefore, represent one of the few remaining government policy instruments through which productive employment opportunities can be stimulated and more balanced economic and social development promoted. Benefits of a local resource-based approach

•It enables higher delivery and maintenance rates of basic assets and services essential for socio-economic development, such as vital access roads, water supplies, markets and health facilities with the same level of investment and at comparable or better quality standards.

 •Creates jobs, particularly for the unskilled, poorer men and women within the community. This results in the injection of income into the local communities, with the immediate effect of increasing their purchasing power. This, in turn, results in improving living standards, such as improved diets, ability to access socio- economic amenities, such as schools, clinics, etc.

•Stimulates local entrepreneurship, community participation and local economic development with important income distribution effects.

•Enables the involvement of the local private sector and industry, that is, contractors, suppliers and manufactures of local materials, tools and equipment.

Advantages of regional resource based manufacturing:

• Bottom Up Approach

• Efficient Use of Local resource

• Balanced Development (Reduces Regional Imbalance)

• Helps Sustainable migration

• Centre-State coordination

• Product and Service specialization in diverse areas.

Resource based approach : Potential for Regional resource based manufacturing:

Hugli Basin : Jute growing regions: Jute mills

Potential Factors: Proximity to jute producing areas , inexpensive water transport,

supported by a good network of railways, roadways and waterways to facilitate movement of raw materials to the mills, abundant water for processing raw jute, cheap labour from West Bengal, and adjoining states of Bihar, Orissa, and UP.

Potential for Employment: India is the largest producer of jute goods and this sector supports 40 lack farm families and provides direct and indirect employment to 4 lakh workers.

Ahmedabad- Mumbai region: Cotton growing regions: Cotton Textile mills

Potential Factors: Availability of raw cotton, market, transport including accessible port

facilities, labor, moist climate, etc. contributed towards its localization.

Potential for Employment:Textile sector provides employment to 45 million persons in

India alone. Textile is one of India’s oldest industries and has a formidable presence in the

national economy as it contributes to about 14 percent of manufacturing value-addition,

accounts for around one-third of our gross export earnings and provides gainful

employment to millions of people.

Resource based approach : Darjeeling – Tea industry

Potential Factors: Climate:

• A temperature over 21°C during the growing season of not less than 8 months

• Highland Conditions: Highlands or hill slopes where the natural drainage is good

• Most suitable soils are slightly acidic and without calcium

• Presence of iron in the subsoil is desirable Shade

• Tea shrubs grow better when shielded from strong sunlight or violent winds.

Potential for Employment: Tea cultivation and processing are labour intensive. Permanent

labour force working for generations and cheap Labour is available from other districts of

West Bengal, Bihar, etc

Chotanagpur Plateau – Availability of Iron ore and Coal – Iron and steel Industries.

Potential Factors: It is the most important centre where coal- Jharia, Giridh, Dhanbad,

Hazaribagh. Iron-ore is found in abundance and it occurs with coal in close proximity which

favors the installment of iron and steel industry in this region. Iron and steel industry uses

large quantities of heavy and weight losing raw materials and its localization is primarily

controlled by the availability of raw materials. Other supplement minerals e.g. manganese,

bauxite and limestone are found in this part of the plateau in abundance. Water, which is

required, is provided by Damodar river and its tributaries, which is a perineal source of

water. Cheap and sturdy labor from the tribes of Chotanagpur and from neighbouring

mining areas is available.

Potential for Employment: Iron and steel industry is the “key” of “basic” industry of India.

Rapid industrialization of the country requires rapid development of iron and steel

industries. The steel industry is providing direct employment to about 2.5 lakh workers.

 Hence, nurtures and develops the local construction and manufacturing industry, retains investment locally and saves on foreign exchange required for foreign imports. Conclusion: Thus, Regional Development leads to the distribution of employment opportunities on an equitable basis and they are not confined only to a handful of states which otherwise might create gaps in the per capita income among different regions.

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