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.

Enroll now for UPSC Online Course

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.

Enroll now for UPSC Online Classes

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.