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
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

Do you know these hidden forces behind your economic and business decisions?

Predictably Irrational By Dan Ariely Harper Perennial, 384 pages, Revised edition: 2010 In this meticulously researched work, Israel-American psychologist and behavioural economist Dan Ariely [h

Social media guidelines: All you need to know about the change

Amidst growing concerns around lack of transparency, accountability and rights of users related to digital media, the government has framed ‘Guidelines and Digital Media Ethics Code’ after elaborate consultation with the public and stakeholders, to have a “harmonious, soft-touch oversight

PLI scheme to boost IT hardware manufacturing

A production-linked incentive (PLI) scheme with a cost of Rs 7,350 crore over four years was approved by the union cabinet Wednesday, aiming to boost domestic manufacturing and attract global investment in IT hardware like laptops, tablets, PCs and servers. The scheme extends an incentive of

Govt could’ve done more to support film industry: Ramesh Sippy

Lamenting the fact that the government has not done enough to uplift cinema halls badly affected by pandemic-induced lockdown and get back audiences to theatres, legendary filmmaker Ramesh Sippy has said that the film industry needs a revival package and larger government support than that announced in the

Genius of Ghalib, equally at home in solving murder mystery

Murder at the Mushaira By Raza Mir Aleph / 344 pages / Rs 799 While Indian-English writing has achieved great heights in literary fiction, that achievement is ye

As Covid cases rise, stringent restrictions are back in Mumbai

With the surge in the number of Covid-19 cases over the past few days in several districts of Maharashtra as well as in the city of Mumbai, stringent measures are making a comeback. BMC municipal commissioner Iqbal Singh Chahal on Thursday announced stricter rules against those flouting Covi

Visionary Talks series with Ramesh Sippy, On The Future Of Cinema



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter