More Foreign Inflows Set To Aid Job Creation In Organised Sector
May 18, 2016
NEW DELHI: Job creation, especially in the organised sector, is set to get a boost with the easing of foreign direct investment (FDI) norms in 15 sectors, according to human resource consultancies.
The figure could be as high as 10 million, mostly in the organised sector. “The move will boost job creation for over 10-million people through the growth of initiatives like Make in India,” said PankajBansal, CEO, PeopleStrong HR.
“The move will also give an impetus to local startups and could help nurture entrepreneurs developing indigenous technologies in crucial and sensitive sectors,” said SrikanthRengarajan, president, US-based staffing firm ManpowerGroup (India).
The initiative will help more workers move from the unorganised sector to organised workforce, HR experts said. According to industry estimates, out of the current 600 million working population, only 7-8% of the workforce is in the organised sector. “With the recent FDI reforms in the space of agriculture and animal husbandry, the number of population working in organised workforce will undoubtedly move into double-digits,” Bansal said.
Manufacturing and construction sectors are also likely to benefit significantly.
“Relaxed FDI norms, along with labour reforms, land reforms and implementation of GST can create a windfall of formal jobs, changing the future of the million kids who are getting added to the workforce every month,” said RituparnaChakraborty, senior vice-president, TeamLease Services, a staffing firm.
The new FDI norms are a positive signal to global investors to inject fresh investments into India, experts said.
“The move will have positive impact on the job market, especially with the easing of clauses for foreign single-brand entities,” said AmitGarg, executive director, digital initiatives, HT Media, which owns Shine.com.