The question of whether the strategy of regional-resource based manufacturing can effectively promote employment in India is a crucial one, given the country’s diverse economic landscape and population size. With its vast and varied resources spread across different regions, India has the potential to leverage local strengths and stimulate job creation through targeted manufacturing initiatives. By tailoring production processes to the unique resources available in each region, there is an opportunity to not only optimize efficiency but also address local unemployment challenges. This strategy could lead to the establishment of specialized industries, tapping into the rich reservoirs of talent and materials specific to each area. However, the success of such an approach hinges on effective policy implementation, infrastructure development, and the creation of a supportive business ecosystem. In this analysis, we will explore the potential benefits and challenges associated with adopting a regional-resource based manufacturing strategy to drive employment growth in India.
Tag: Developmental issues, urbanisation.
Decoding the Question:
- In the Introduction, try to briefly write about the manufacturing sector and the need for regional-resource-based manufacturing.
- In Body,
- Write how regional resource-based manufacturing can promote employment in India.
- Also, write some challenges in developing regional resource-based manufacturing.
- In Conclusion, try to write about the overall significance of regional-resource-based manufacturing.
Answer:
The manufacturing sector is considered the cornerstone of overall development, playing a vital role in economic growth by reducing reliance on agricultural income and generating employment in secondary and tertiary sectors. The National Manufacturing Policy aims to raise manufacturing’s contribution to GDP to 25% by 2022.
Regional Resource-Based Manufacturing Areas Can Promote Employment:
- Utilisation of Local Resources: In the state of Chhattisgarh, India, the establishment of coal-based power plants capitalises on the abundant coal reserves in the region. These power plants create direct employment for engineers, technicians, and operators involved in power generation.
- Diverse Employment Opportunities: Visakhapatnam, located in Andhra Pradesh, India, is a hub for diverse resource-based manufacturing industries. The city houses steel plants, textile mills, and agro-processing units, offering employment options for people with varying skill sets and educational backgrounds, from engineers and technicians to labourers and artisans.
- Supply Chain and Ancillary Jobs: The resource-based manufacturing cluster in Morbi, Gujarat, India, specialising in ceramic and tile production, has led to the development of ancillary industries. This includes transportation services for raw materials and finished products, packaging units, and maintenance services, generating additional employment opportunities in the region.
- Skill Development and Training: The solar manufacturing hub in Bengaluru, Karnataka, India, has invested in skill development programs for engineers and technicians to support the renewable energy industry. Training initiatives in solar panel production and maintenance enhance the employability of local residents, meeting the industry’s demand for skilled workers.
- Balanced Regional Development: The establishment of an automobile manufacturing unit in Pune, Maharashtra, India, has promoted balanced regional development. The presence of this industry in Pune and the surrounding regions has reduced over-reliance on urban centres like Mumbai, providing employment opportunities for rural and semi-urban populations.
- Multiplier Effect: The growth of the electronics manufacturing industry in Noida, Uttar Pradesh, India, has had a multiplier effect on employment. As electronic manufacturing units expand, they stimulate the growth of related industries, such as electronic component suppliers, retail outlets, and service centres, creating a chain of employment opportunities.
- Export-Oriented Industries: The seafood processing units in Kochi, Kerala, India, focus on export-oriented production. These units process and package seafood for international markets, leading to increased demand and job creation in seafood processing and export sectors, benefiting local communities.
- Technology Transfer and Innovation: Collaborations between Indian pharmaceutical companies and multinational corporations in Hyderabad, Telangana, India, have led to technology transfer and innovation in drug manufacturing. This has resulted in the growth of research and development centres and advanced pharmaceutical manufacturing units, generating employment in high-skilled positions.
Challenges in Regional Resource-Based Manufacturing:
- Infrastructure Deficiencies: Inadequate infrastructure, such as transportation networks, power supply, and connectivity, can hinder the smooth functioning of resource-based manufacturing units. For instance, according to the World Bank’s Logistics Performance Index, India’s logistics infrastructure ranked 44th out of 160 countries in 2018, indicating the challenges faced in transporting goods efficiently. For example, In the state of Odisha, India, the mineral-rich regions face challenges due to inadequate transportation infrastructure.
- Skilled Labour Shortage: Despite investments in skill development, there can be a shortage of adequately skilled labour for specialised tasks in resource-based manufacturing. According to a report by the International Labour Organization, 74.2 million youth in India were unemployed or underemployed in 2022, highlighting the need for targeted skill development initiatives. For example, In Karnataka’s technology and manufacturing hubs, there is a shortage of skilled workers with expertise in emerging technologies such as artificial intelligence and automation.
- Environmental Concerns: Resource-based manufacturing, particularly in sectors like mining and petrochemicals, can raise environmental concerns. Adherence to environmental regulations and sustainable practices is crucial to mitigate negative impacts on local ecosystems. For example, the closure of illegal coal mines in Jharkhand, India, in 2022 due to environmental damage illustrates the challenges in maintaining a balance between development and environmental conservation.
- Market Volatility: Global market fluctuations and changing consumer demands can impact the viability of resource-based manufacturing units. For example, changes in international trade policies or demand shifts can affect the export-oriented industries in regions like Kochi, and Kerala, relying heavily on seafood exports.
- Land Acquisition and Displacement: Acquiring land for setting up resource-based manufacturing units can lead to displacement of local communities, raising social and ethical concerns. For example, Land acquisition protests, such as the ones witnessed in Singur, West Bengal, over the Tata Nano car plant in 2008, exemplify the challenges faced in obtaining land for industrial purposes.
Regional resource-based manufacturing can greatly help generate employment in India, especially in the case of renewable resources such as agro products, bamboo, coir, jute etc. Government steps like One Nation One Product, Atma Nirbhar Bharat Abhiyan, Udhyami Mitra, MSMEs Outreach Programme etc. are giving a boost to regional resource-based manufacturing.
In case you still have your doubts, contact us on 9811333901.
For UPSC Prelims Resources, Click here
For Daily Updates and Study Material:
Join our Telegram Channel – Edukemy for IAS
- 1. Learn through Videos – here
- 2. Be Exam Ready by Practicing Daily MCQs – here
- 3. Daily Newsletter – Get all your Current Affairs Covered – here
- 4. Mains Answer Writing Practice – here
