Foreign-trade / Foreign Trade / Exports and Employment in India
- Integration of Economic Development and Employment:
- Objective: One of the crucial goals of trade policy is to integrate economic development with the creation of increased employment opportunities.
- Identified Employment-Intensive Sectors:
- Sectors Identified: The government has identified 12 export sectors as particularly employment-intensive.
- Examples: Textiles and garments, leather goods, gems and jewelry, cereals, horticulture, flowers, fruits and vegetables, dairy products, processed foods, toys and sports goods, pharmaceuticals, automobiles and auto-components, consumer electronics, and electronic hardware.
- Focus on Labour-Intensive Sectors:
- Efforts Needed: Special efforts are required to promote exports from these labour-intensive sectors.
- Policy Consideration: Experts suggest that making labour laws more flexible could provide a significant boost to labour-intensive exports.
- Support for Small and Medium Enterprises (SMEs):
- Significance: SMEs contribute over 50% to total exports and are relatively more labour-intensive.
- Required Support: SMEs need increased financial and marketing support, better testing facilities, and improved infrastructure to enhance their export capabilities.
- Challenges Posed by GST:
- Impact: GST implementation had some erosive impacts.
- Challenges Faced: Problems with GST registration and refund processes affected working capital availability, especially in the initial phases.
Conclusion: India's trade policy aims not only at fostering economic growth through exports but also at creating substantial employment opportunities. The identification of specific employment-intensive sectors and the focus on supporting SMEs reflect the government's commitment to inclusive growth. Overcoming challenges posed by factors like labour laws and GST is essential to ensure the sustained growth of labour-intensive exports and overall economic development.
