2. Account for the failure of manufacturing sector in
achieving the goal of labour-intensive exports rather than capital-intensive
exports. Suggest measures for more labour-intensive rather than
capital-intensive exports. (150 words)
• More
emphasis is given to heavy capital-intensive industries since 2nd Five Year
Plan like iron, steel, coal, petroleum etc. These industries have long
gestation period, require large capital and technology, and also face issues of
internationalcompetition with countries like China.
• Industries like
footwear, leather, apparel were ignored at the cost of capital intensive
industries. So, these industries did not given enough exposure to capital,
technology, good managerial skills etc.
• Most of
these labour-intensive export oriented industries are concentrated in the
unorganised sector which employs less than 10 people and suffers from the above
mentioned problems as well. So, they are also not able to drive India's
manufacturing sector.
• In the
organised manufacturing sector, the strict labour laws, harsh taxation and
inspector Raj did not allow this sector to grow as labour-intensive one.
Due to all these factors Indian economy is suffering from
the ills of jobless growth. To change this picture, we need to adopt measures
like
• Concentrate
more on labour-intensive sectors
like apparel, footwear, food processing etc.
• Diversification
of markets so that the exports does not face the problems of global slowdown.
• Relaxation
of labour laws along with providing favourable taxation and environmental
regulations for these industries.
• Emphasis
should be given on converting informal units into formal.
These measures have the tendency to really achieve the
demographic dividend in India.