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Posted on Nov 28, 06:14PM | IBNS
Notwithstanding the fact that services sector remains the biggest source of employment in urban areas throughout the country, Haryana and Gujarat have managed to ensure that industry too provides a major avenue for jobs, according to just concluded study by apex industry body ASSOCHAM.
As many as 319 people per thousand were employed in the industry in urban Haryana and 306 in Gujarat as against the national average of 242, as per the latest data from the National Sample Survey Office (NSSO).
The two states were the top in terms of the industry providing the maximum employment in the urban areas among the major states.
An analysis of the official data showed that these two states were less dependent on services sector per thousand people for employment.
As against the national average of 683 urban people per 1000 finding jobs in the services sector, 641 found jobs in Gujarat and 627 in Haryana as per the latest figures of the NSSO. The dependence, commensurately increased in the industrial sector.
The services sector contributes the maximum to the national economy accounting for over 56 per cent of the GDP. However, over-dependence on the services, mainly trade, hotels, restaurants, transport etc is not considered the best option for a country which aspires for a growth combined with employment generation.
"The share of industry in the overall employment must grow so that more and more people can get jobs in the manufacturing sector," said Rajkumar Dhoot, president of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
"Though the share of the industrial sector in the total employment is more than its contribution in the GDP, we need to increase its role in the overall economy," said the ASSOCHAM chief.
As per the 2009-10 NSSO figures, the latest official data available so far, the share of industry in the total employment in the country was about 22 per cent.
The manufacturing sector contributes the maximum to the industrial sector and the jobs as well, and it is in this area that the country should focus on, highlights the ASSOCHAM analysis.
"After all, China has come to be known as the factory of the world and it is on the back of its manufacturing it has emerged as the fastest growing economy in the world. We have done well in the services sector, particularly in the software and the entire information technology arena, but we have to diversify aggressively in the manufacturing," said Dhoot.
"The government, industry and other stakeholders will have to ensure that all the obstacles like land acquisition, environment issues and others which have been blocking investment in the big manufacturing projects should be removed sooner than later."
The official data shows that even the states like Jharkhand, rich in mineral resource, have not well in terms of industrialization and the commensurate employment dependent on the sector.
The industry provides jobs to only 160, per 1000 people, in Jharkhand whereas it is just about 121 in Bihar and 137 in Assam.
The states like Rajasthan with average employment of 186 (per 1000) dependent on the industry, in the urban areas have also not done well in the industrial progress.
With tourism as the main source of jobs, the services sector in Rajasthan is overwhelmingly the biggest source of jobs in the western state.