The secondary sector of the Indian economy includes activities related to manufacturing, construction, and energy production. The secondary sector has played a crucial role in the economic growth and development of India, contributing significantly to the country’s GDP and employment generation. Here are some details regarding the employment growth rate in the secondary sector:
- Historical Trend:
The employment growth rate in the secondary sector has been fluctuating over the years, with some periods of high growth and some periods of decline. The period of 2004-2005 to 2011-2012 saw high growth in the secondary sector’s employment, with a growth rate of around 3.2% per annum. However, in recent years, the employment growth rate in the secondary sector has declined, with a growth rate of around 1.8% per annum during the period 2011-2012 to 2017-2018. - Factors Affecting Employment Growth:
The employment growth rate in the secondary sector is influenced by various factors such as technological advancements, global economic conditions, government policies, and labor market dynamics. The adoption of advanced technologies in manufacturing processes has increased productivity, leading to higher output with less labor. The global economic conditions, such as demand and supply factors and trade policies, also impact the employment growth rate in the secondary sector. Government policies such as industrial policies, labor laws, and taxation policies can also affect the growth rate of employment in the secondary sector. - Challenges Faced:
The secondary sector has been facing various challenges in recent years, leading to a decline in the employment growth rate. Some of the challenges include low productivity levels, the lack of skilled labor, the inadequate infrastructure, and the regulatory environment. The growth of the informal sector and the gig economy has also affected the employment growth rate in the secondary sector. - Future Prospects:
The government has been implementing various measures to boost the growth of the secondary sector and employment generation. The ‘Make in India’ initiative, the implementation of the Goods and Services Tax (GST), and the introduction of the National Manufacturing Policy are some of the initiatives taken to promote the growth of the manufacturing sector. The government is also focusing on improving the skill development and training of the workforce to meet the industry’s requirements. The infrastructure development initiatives such as the construction of roads, ports, and airports are expected to create more employment opportunities in the construction sector.
In conclusion, the employment growth rate in the secondary sector has been fluctuating over the years, and the sector faces various challenges. However, the government’s initiatives and the focus on skill development and infrastructure development are expected to provide a boost to the growth of the secondary sector and employment generation in the coming years.