Is regional resource-based manufacturing a viable strategy for increasing employment in India?
Regional resource-based manufacturing refers to the development of industries that may easily employ locally accessible raw materials or resources. Local resource-based manufacturing will use raw materials available near the area industry, resulting in job creation. From a cost, availability, and staff retention standpoint, regional resource-based manufacturing can benefit from the local by employing them for basic and menial occupations – housekeeping, security, clerical, loading/down loading goods, admin, and infrastructure maintenance. With the development in industrialization, it has been seen that some places are increasing at a quicker rate due to locational advantages, while others are lagging behind. The steel sector, for example, has created a large number of jobs in the city of Jamshedpur.
How it will increase employment
- People with specialised skill sets are necessary to operate in industries where the major focus is on a single sort of resource. This will increase the demand for employees with that particular skill set. For example, a distillery and a manufacturing facility for alcoholic beverages.
- Creating auxiliary industries- When a specific type of industry is formed with a given resource, various little industries in the form of MSME’s are established to supply smaller things to the main industry. These tiny businesses will aid in the creation of new jobs.
- Aside from that, there are secondary job opportunities in the form of cafés, hostels, and shops that spring up to serve the sector’s workers, as well as peripheral units that service the main industry. All of these would result in more jobs being created.
- Because a supply chain is a network between a firm and its suppliers that distributes a specific product to the final buyer, the development of a supply chain in the area offers more employment opportunities.
- Different activities, people, entities, information, and resources are all part of this network. As a result, regional resource-based manufacturing generates ancillary sectors, which in turn generates more jobs.
- Transportation costs will be reduced due to the close proximity of raw materials and manufacturing units. This will aid in the hiring of more capable workers from that location.
- Expertise- Manufacturing expertise may be established in the region, which would aid in the creation of new jobs.
- It encourages regional specialisation of manufactured goods while increasing market value.
- In the secondary and tertiary levels, the industry also generates prospects for entrepreneurship and employment in ancillary industries and services.
- Demand for consumer items would be higher and more diverse. This sets in motion a cycle of probable expansion in secondary and tertiary sector production, distribution, and support.
- It would also narrow the wealth disparity between rural and urban areas, resulting in fewer forced migrations.
- Issue of land acquisition
- Environmental Concerns
- While several states, such as Jharkhand and Chattisgarh, have significant mineral resources, a major hurdle has been the lack of basic infrastructure, particularly roads and power.
- People in these manufacturing businesses lack the necessary expertise.
- The MSME sector, which will account for the lion’s share of such a strategy, is already confronting issues relating to marketing, lending, growth, and the lack of sufficient manufacturing technologies, among other things.
- In India, protecting and enforcing intellectual property is both costly and dangerous.
- Orissa has also announced the ‘Odisha Industrial Development Plan: Vision 2025,’ which focuses on five sectors with the goal of attracting Rs. 2.5 lakh crore in investments and creating 30 lakh direct and indirect jobs.
- The One District, One Product initiative of the Uttar Pradesh government aims to promote traditional businesses associated with their individual districts in order to boost the local economy and create jobs.
- The North East Industrial Development Scheme (NEIDS) fosters the formation of micro, small, and medium-sized firms (MSMEs) in the region.
- Forest-based enterprises and tribal products are being promoted in many states due to their potential to alleviate unemployment and poverty.
- GI-tagged products can be created locally and sold globally in different states and regions.
The National Manufacturing Policy intends to raise manufacturing’s proportion of the country’s GDP to 25% by 2022. However, it has been noticed that the rate of development in some locations is extremely rapid due to geographic advantages and a high level of industrialization, while other areas lag behind. Regional manufacturing becomes extremely significant in this sense.
How to structure:
- The question is about regional resource based manufacturing- So write it from Indian geography perspective- draw the map where you mark resources available in India and write a brief introduction about it.
- Now, explain whether a regional based manufacturing will increase employment or not
- Mention challenges faced- ex: Transportation, availability of ports, Naxalism etc
- Suggest measures