Indian Government Reforms and Schemes to Boost Male Employment
To address the challenge of generating sustainable employment opportunities, the Indian government has introduced several reforms and schemes over recent decades. Here, we outline some notable initiatives aimed at fostering male employment:
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Atmanirbhar Bharat Rojgar Yojana (ABBY)
Launched in October 2020, ABBY provides wage subsidies to employers for hiring new workers, primarily disadvantaged groups. Its goal is to increase formalization of the labour force while reducing poverty and unemployment.
Upto 19th January, 2024, a total of Rs.10,138.56 crore has been disbursed under the scheme, benefitting 60.49 lakh people according to the government website data.
Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
Established in September 2016, PMRPY offers wage subsidies to employers hiring new employees aged between 18 and 29 years old. The scheme promotes the formalization of the labour market and encourages skill development.
Upto 31.03.2022, a total of Rs.92,53,20,45,358 was disbursed to approximately 1,52,900 establishments, benefitting about 1,21,69,960 people.
Manufacturing Sector Reforms
The Indian government has introduced several policies to stimulate the manufacturing sector, including the introduction of GST or the Goods and Services Tax, reduction in corporate taxes, and policy measures to encourage domestic manufacturing through public procurement orders.
The Goods and Services Tax (GST) has reportedly had a positive impact especially on job creation in India. The implementation of GST has led to increased formal sector employment in industries such as automobiles, logistics, e-commerce, and cement. E-commerce and logistics have seen significant job creation due to increased demand, while the cement industry is also expected to generate employment opportunities. A study suggested that the passage of the GST bill would lead to growth in the job market, with an expected 11-18 percent increase in jobs per year in the aforementioned sectors.
Furthermore, the GST has attracted multinational companies to India, leading to increased job opportunities. The new tax regime has also contributed to the growth of the manufacturing sector, which is expected to create more employment opportunities. Additionally, the GST has led to increased transparency in transactions and has encouraged the expansion of businesses, thereby contributing to job creation.
Make in India
The Make in India initiative or idea which was launched in 2014 aimed to transform India into a global design and manufacturing hub, attracting investment and creating jobs. However, the scheme has been met with mixed success and failure.
According to some sources, the Make in India initiative has failed to achieve its objectives. The share of manufacturing in India's GDP fell from 15% in 2014 to 14% in 2019, and the country failed to create an international niche market for its products and services. The initiative set out too ambitious growth rates for the manufacturing sector to achieve, and it brought in too many sectors into its fold, leading to a loss of policy focus. The lack of direct investments and complicated labor regulations were also cited as hurdles to success.
However, there have been some successes achieved through the Make in India initiative. India saw an improvement in its rank in the World Bank's Ease of Doing Business Index over a period of six years. The ranking went from 142nd in 2014 to 63rd in 2020. The initiative has attracted foreign direct investment, and investments by companies like Mercedes, Tata Motors, and Suzuki Motors in the automobile sector have shown signs of progress. The initiative has also led to growth in the aviation and chemicals sectors.
Skill India
The Skill India initiative, aimed at preparing youth for employment through developing technical and vocational skills in various sectors, has faced both successes and failures. Key challenges include:
Lack of Sensitization | The government failed to adequately raise awareness about the program, particularly in rural and disadvantaged communities where the neediest individuals often live. |
Too Many Training Partners | Empaneling numerous training providers led to a decrease in oversight and accountability, resulting in subpar service delivery. |
Poor Employment Linkages | There was insufficient effort made to establish robust connections between trained youth and potential employers. |
Franchising Model | Allowing training centers to operate under a franchise model weakened the ability to maintain consistent quality control and funding stability. |
Insufficient Training Capacity | The scale of training provided did not always guarantee employment for those who completed the programs. |
Low Industry Interface | Training institutions often lacked meaningful interactions with industries, limiting the relevance of the skills taught. |
Despite these challenges, Skill India has seen some progress. By the end of 2018, approximately 25 million individuals had been trained under the scheme, up from 3.5 million in 2016–17. However, the overall placement rate remained low, with estimates suggesting that only around 20% of trainees found employment. To address these concerns, experts recommend enhancing expenditure on education and training, improving evaluation methods for training institutes, conducting regular skills surveys, and increasing collaboration with industries. Additionally, adopting successful models from countries like Germany, Japan, and South Korea may provide valuable lessons for bridging skill gaps and ensuring effective training.
Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)
This scheme provides electricity connectivity and improves distribution systems in rural areas, facilitating job creation in the energy sector. The Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) has encountered both successes and failures in its implementation.
Failures
| - The Comptroller and Auditor General (CAG) of India found several lapses in the implementation of DDUGJY by distribution companies (discoms), including the failure to meet feeder segregation targets, non-replacement of defective meters, and incorrectly declaring unelectrified villages as electrified. |
| - The scheme has faced challenges such as high operation and maintenance costs, supply rationing, and difficulties in electrifying villages in inaccessible or left-wing extremism-affected areas. |
Successes
| - The scheme has led to the installation of solar panels in certain institutions, such as madrassas, contributing to the electrification of rural areas. |
| - Despite the challenges, the scheme has made progress in providing electricity connectivity and improving distribution systems in rural areas, albeit with some shortcomings in implementation. |
In summary, while the DDUGJY has made some headway in enhancing rural electrification, it has also encountered significant obstacles in its execution, particularly related to the proper implementation of the scheme.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a scheme that offers skill training courses to unemployed youth, enabling them to secure employment in various sectors. The scheme has encountered both successes and failures in its implementation.
Failures
| - The scheme has faced challenges such as high operation and maintenance costs, supply rationing, and difficulties in reaching out to the target population in rural areas. |
| - The scheme has also been criticized for its lack of proper implementation, with candidates either not appearing for assessment or failing in assessment tests. |
| - The placement rate of the scheme has been low, with estimates suggesting that only around 15-20% of trainees have secured employment. |
Successes
| - The scheme has trained a significant number of individuals, with over 4.47 million people trained under the scheme as of January 2022. |
| - The scheme has also been successful in providing industry-relevant skill training to youth, with training provided in over 2,000 job roles. |
| - The scheme has contributed to an increase in employability and income of the students enrolled in the skilling programs under the scheme. |
In summary, while the PMKVY has made progress in providing skill training to unemployed youth, it has also encountered significant challenges in its execution, particularly related to proper implementation and low placement rates. To address these concerns, experts recommend enhancing expenditure on education and training, improving evaluation methods for training institutes, conducting regular skills surveys, and increasing collaboration with industries.
However, despite these initiatives, challenges persist, including low productivity, low levels of remuneration, and a complex and large number of labor laws. Addressing these issues requires continued collaboration between the government, private sector, and civil society organizations.
