By 2020, median age in India will be 28.1 years

Planned skill development would help India make productive use of its young population, says parliamentary committee

GN Bureau | January 5, 2017


#PRS Legislative Research   #Japan   #China   #India   #Parliamentary Committee   #GDP   #Economy  
Representational image

In the next three years, the median age in India is projected to be 28.1 years, as compared to China (38.1 years), Japan (48.2 years) and USA (37.3 years), said a report of the standing committee on the industrial policy in the changing global scenario.

The report said that presently, a majority of the working population in the country is in the unorganised sector, making it difficult to gauge the skill requirement in the sector.

The committee recommended that planned skill development would help India make productive use of its young population. The low cost of production in India will also help in giving it a competitive global advantage in manufacturing and production, said a summary of the report prepared by PRS legislative research.

On industrial reforms, the committee noted that reforms must be taken up regarding a number of aspects in the industrial sector. To ensure transparency in the allocation of natural resources, an open, competitive mechanism must be undertaken, along with greater disclosure of the approval process for industries.

Other reforms suggested include industry-friendly land acquisition frameworks by state governments, anti-corruption reforms, better inter-ministerial coordination, and judicial, financial and efficient public procurement reforms. The National Manufacturing Policy must be reoriented to promote smart manufacturing, which includes zero emission, zero-incident, and zero-defect manufacturing.

On research and development, the committee noted that the manufacturing sector is mainly composed of low value addition industries, and thus cannot create technological capabilities. India’s manufacturing value addition is $226 billion, compared to China’s $1,923 billion and USA’s $1,856 billion. In addition, India spends 0.8% of its GDP on research and development, compared to 1.2% by China and 2.6% by USA.

The committee recommended that the government needs to provide an enabling environment for private enterprises to invest in technology creation in order to achieve high value addition. Special focus must be placed on machine tools, heavy electrical equipment, transport and mining equipment.

Regarding foreign direct investment in small enterprises, the committee noted that the recent measures taken to promote foreign direct investment (FDI) mainly benefit large industries. It recommended that the government may take measures to promote FDI in the small and medium enterprises sector. In addition, for FDI in any industry, the ownership may be allowed to be transferred to the Indian partner after a specified period (15-20 years), including the transfer of technology. Foreign investors may be encouraged to source their inputs other than technology, from within India.

Read: Labour laws are not a problem to industrial development

 

Comments

 

Other News

Reform first, privatise later: Bibek Debroy to railways

Before privatisation and corporatisation, the Indian Railways need to undertake major reforms including commercial accounting, decentralisation and human resource among others, said Bibek Debroy, economist and member, NITI Aayog at Railways Reforms and Governance Conclave organised by Governance Now on Fri

NTPC plans for 32 GW installed capacity via renewable sources

NTPC Ltd has raised Rs 2,000 crore through green masala bonds in overseas market under its $4 billion medium term note programme, union minister Piyush Goyal informed the Lok Sabha. The proceeds of these bonds will be used for financing renewable energy projects in accordance with applicable

Big test for Palanisami

It’s been over a month since the power centre in Tamil Nadu shifted from Poes Garden to Greenways Road in Chennai. The thirteenth chief minister of the state, Edappadi K Palanisami, is taking baby steps to bring about a change in the state which has been battling political uncertainty for the past fe

A trowelful of empowerment

When her husband died last year, 60-year-old Chakkamma was not sure whether she would be able to have some money of her own: she has a son who looks after her, but she wanted to maintain a degree of independence. Opportunity came knocking when the Tamil Nadu government, as part of its Pudhu Vaazhvu (or new

Should Shiv Sena MP Ravindra Gaikwad be arrested for assaulting an Air India employee?

Should Shiv Sena MP Ravindra Gaikwad be arrested for assaulting an Air India employee?

Railways suffered over Rs 33,000 crore loss on passenger service: CAG

  The Railways was unable to meet its operational cost of passenger and other coaching services. During 2014-15, there was a loss of Rs 33,821.70 crore on passenger and other coaching services. The freight services earned a profit of Rs 38,312.59 crore which indicated that 88.28 percent

Video

जानिए क्यों ये किसान अर्धनग्न अवस्था में बैठे हैं जंतर मंतर पर

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter