T V Mohandas Pai, renowned pundit on human resources and chairman of Manipal Global education has advised the prime minister to include job creation as a major provision in all government policies. The government has taken a serious note of his suggestion and it has been reflected in the recent startup policy as well.
Under the revised startup policy, companies eyeing benefits under 'Startup India' programme will have to declare how many jobs they will create in order to get tax benefits. The new industrial policy expected in October will also have a major thrust on job creation. According to recent reports, Maharashtra government is working on a policy to link job creation with incentives for industrial investment.
"Today, there is no incentive for job creation. We are focusing more on capital creation. For example, under corporate tax, there is an incentive of Rs 1.15 lakh crore for capital investment. But a garment factory that creates 10,000 jobs does not get any incentive for employing so many people. China grew by incentivising labour. The government needs to seriously look into this", said Pai. He was speaking to reporters on the sidelines of FICCI Global Skill Summit.
Pai also refuted the charges of jobless growth during Modi regime. According to him, 1.8 crore jobs have been created in the last 3 years, almost 60 lakh per year. When asked whether this job growth is more than the UPA regime, he said it is around the same range without divulging any number.
"The economy is growing except for a minor blip, so jobs should be growing. There is no question about that", he said. Pai further said that jobs will be a major focus in 2019 elections.
Unveiling the "Future of Jobs" report, he agreed that automation will change the job market in a big way. While people might still find employment, at least 15 to 20 per cent jobs will become redundant by 2022, he thinks.
As per FICCI's report, 9 per cent people would be employed in jobs that don't even exist today.