13.6 mn more jobs from exports
The merchandise exports industry will create 13.62 mn additional jobs by 2010 if the target of $150 bn exports by then is achieved.india Updated: Apr 07, 2006 16:26 IST
The merchandise exports industry will create 13.62 million additional jobs by 2009-10 if the target of doubling exports to $150 billion by then is achieved, says a new study released on Friday.
Conducted by the Research and Information System for Developing Countries, a think tank here, the study said by achieving $150 billion in exports, the sector would be able to generate 8.16 million direct and 5.46 million indirect jobs.
The study, released by Commerce Minister Kamal Nath, found that 1.4 million direct new jobs had been created by the exports sector in 2004-05, to bring the total employment generated by the export sector in India to nine million.
This was in addition to 6.9 million export-related indirect jobs created through backward linkages and in logistics. "In all, merchandise export activity seems to sustain nearly sixteen million jobs currently," the study said.
The study, unveiled along with the annual review of foreign trade policy, said if India exploits prospects in labour intensive goods, its merchandise exports in 2009-10 could reach $165 billion and generate 21 million new jobs.
Seeing this potential, Kamal Nath also announced two new schemes to give a push to employment generation, particularly in semi-urban and rural areas - a key objective of the foreign trade policy.
"The 'Focus Product Scheme' will give a thrust to the manufacture and export of certain industrial products which could generate large employment per unit of investment compared to other products," the commerce minister said.
"The 'Focus Market Scheme' seeks to penetrate markets to which India's exports were low and which Indian exporters had perhaps been neglecting due to high freight costs and undeveloped networks," he added.
The first scheme allows duty-credit facility at 2.5 per cent for 50 per cent of the export value of notified products such as fish and leather products, sports gods, stationery, fireworks, toys, handloom and handicraft.
The focus market scheme allows duty credit at 2.5 per cent of the export value of all products to some notified countries.