Empowering Indian Workers, Vital for India’s Manufacturing and Economy

Context

India aims to grow its economy to $10 trillion by 2035, with manufacturing’s share expected to increase from 15% to 25% of GDP.

Government Initiatives to Boost India’s Manufacturing

• Production Linked Incentives (PLIs): The government has launched Production Linked Incentive schemes to boost domestic manufacturing in key sectors.
• Make in India: The Make in India program aims to facilitate investment, foster innovation, enhance skill development, and build best-in-class manufacturing infrastructure.
• Industry Hubs: States are engaging in creating industry-specific hubs to attract investment and promote manufacturing clusters.

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Empowering Indian Workers- Enhancing Manufacturing Through Safe Accommodation

• Worker Empowerment: Amidst debates over fiscal incentives and land policies, worker empowerment is often neglected as a key factor in unlocking India’s manufacturing prowess.
• Safe Accommodation: Safe, on-premises or factory-adjacent workers’ accommodation is crucial for addressing issues related to skilling, productivity, and attrition.

Benefits of Workers’ Accommodation- Enhancing Productivity and Empowerment

• Reduced Costs: Reduces transportation costs and improves worker productivity by eliminating long commutes.
• Workforce Empowerment: Enables the creation of women-only or women-majority factories, promoting worker and women’s empowerment.
• Skill Development: Addresses issues related to skilling, productivity, and attrition by providing a stable living environment.

Historical Examples- Prioritizing Workers’ Accommodation in India

• Public Sector: Public sector undertakings like Bhilai and private sector companies like Tata Steel Jamshedpur prioritized housing and housing and community.
• Changing Times: While circumstances have changed, the central idea of addressing workers’ accommodation remains crucial.

Policy Implications- Integrating Workers’ Accommodation in Land Allocation and Incentive Schemes

• Land Allocation: Land allotment must extend beyond factory construction to include workers’ accommodation.
• Flexible Arrangements: Flexibility in operating arrangements for enabling infrastructure.
• Financial Incentives: Union government’s role in offering tax incentives and priority sector sector tagging for construction finance.

Triangular Leadership- Collaborative Approach for Worker Accommodation and Manufacturing Growth

• Centre/State, Private Sector: Collaboration between the Centre, state, and private sector firms is essential to unlock India’s manufacturing ambitions.
• Workers’ Accommodation: Workers’ accommodation should be a part of the 100 day plan for the new government, as it could be the “chhoti chabi” that opens the “bada tala” of India’s manufacturing prowess.

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Conclusion

Even after these steps are taken, it will require leadership from private sector entities to establish top-notch workers’ accommodation. Reduced transportation expenses, heightened productivity, enhanced training capabilities, mitigation in workforce attrition, and lower carbon footprint.