L&T chairman: Make in India is yet to create enough jobs

Make in India was an initiative taken by the government to generate enough jobs for the mass. However, it has failed to fulfill its promise as companies across sectors still prefer to import goods instead of manufacturing them locally as stated by A.M. Naik, the chairman of Larsen and Toubro Ltd.

Naik who is also the head of the National Skill Development Corp said in an interview:

“The Prime Minister’s Make in India programme, which is spoken about a lot, has to do a lot more. We are exporting jobs now instead of exporting goods.” He also said, “We have to find answers as to why most Indian companies are keen to import rather than manufacture here.”

Naik pointed out the main reason why Indian companies don’t want to manufacture goods locally but to import them. According to him, the lack of financial options has led the companies to take this step. He said:

“We allow imports because it often comes with a credit facility.”

India happens to be home to the world’s largest youth population. Considering this very fact the country needs to generate enough job opportunities for the 10 million young people who enter the job market every year. According to the latest job reports, India is not able to create enough job opportunities for its massive population.

The economic growth of the country has slowed down by 5.8% in the last three months. It is estimated that the growth will further slowdown in the current fiscal year.

Naik said that jobs, especially in the manufacturing sector, has failed to keep pace with the supply of labor.

Naik stated;

“The mismatch between the right skills and jobs will always be there, but it’s the gravity of the situation that matters the most. He also added, “We need at least an economy equivalent to China’s since our population is almost the same. Otherwise, there is always going to be a shortage of jobs and unless the economy grows as it did in China, which means at least 12 to 13% growth every year, this disparity will remain.”

Naik further added;

“We are not able to create jobs at the pace needed to bridge this gap.”

Naik said that as the chairman of NSDC he wants to improve the quality of trainers in the system. He said:

“We need high-quality staff and teachers for training.”