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MAKE in INDIA and Skill Development

Various reports show that 80% of the world economy is depended on the manufacturing sector. The contribution of the service sector is 20%. It is in fact quite natural. The basic force that makes an economy progress is the transaction of manufactured products. You cannot lose out any person in this world from the lifecycle activities of manufacturing. You will be able to see every man in the life cycle of manufacturing, in various roles, like an investor, entrepreneur, expert, worker, distributor, seller and buyer and as one who enjoy the related ecosystems being formed as a byproduct of the manufacturing activities.

Nowadays service is also a product. However, service sector also finds its soul in the manufacturing sector. The reason, why we need a service is most often related to a manufactured product. The best example would be retail. Similarly, most of the soft services are also produced for the mobility of manufactured products.

The history also teaches us that prominent economies in the world are built on the solid foundation of manufacturing sector – just a revisiting of developments from 19th century (two industrial revolutions) onwards would be sufficient enough to prove this theory. If you are not convinced yet, please search for the root cause of the recent economic meltdown all over the globe. There you will definitely notice that over dependence on the service sector and undermining of the manufacturing sector as the two principal reasons. Thus, for India, MAKE IN INDIA initiative becomes the need of the hour.

Now let us try to establish the link between manufacturing and skill development based on the following two facts:

  1. Various studies show that a minimum of three jobs are created in the related sectors against each job in the manufacturing industry. 
  2. There are reliable findings, based on researches, on why manufacturing industry does not flourish in some parts of the world. One of the major hindrances is the lack of skilled manpower.
One trustworthy way to show the link between skilled manpower and economic prosperity would be to examine the percentage of skilled workforce among the working age group people in some of the prosperous economies. Reports state that in Korea it is 96%, Japan 80%, Germany 75% and in UK 68%. But in India, it was stated as 10%. It gives India the reason why the country should give greater importance to industry specific skill development.

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