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Sunday, 28 February 2016

Suggestions to PMO 9: Jobs in Organised sector vs Unorganized sector in India

Suggestions to PMO 9: Jobs in Organised sector vs Unorganized sector in India

This is ninth one in the series of Suggestions to PMO, Where we are discussing Jobs in Organised sector vs Unorganized sector in India. Employees in the unorganized sector are poorly paid in comparison to the organized sector. Employees in the organized sector are at the top of the job pyramid and that of the unorganized sector is at the bottom. We are also witnessing that demands of organized employees are ever growing despite their much better placements.

We have been suggesting the Prime Minister's office since our beloved Prime Minister Sri Narendra Modi has become Indian Premier. We know that he is very keen to know from the public about their problems and to act to solve these problems. We discuss with the experts from the different walks of life such as professionals, business persons, politicians, academicians, journalists, students, farmers and common people of India at large and write on the basis of their opinions. today, we are discussing Jobs in Organised sector and Unorganized sectors in India.

Jobs: Organized vs unorganized sectors in India

India has a small percentage of jobs in the organized sector in comparison to Unorganized sector. Whereas, in developed countries, more jobs come from the organized sector. This is the basic difference in the job scenario between developed nations and India. If we want to uplift the economically deprived class in India, we have to understand situations of both sectors and analyze the circumstances with an open angle. The organized sector in India is providing only 8-9 percents of total employment. Further, most of these jobs are from government sectors. The organized private sector has only a little contribution in providing employment.

India is still a land of farmers and the agricultural sector provides most of the employment. And we know that this is more or less, in the unorganized sector. Farmers are on the lower side of per capita income. The government spends a lot on account of salaries and other benefits to their officials and other employees that put the budget into stress. The finance ministers are always left with resource constraints for infrastructure development and other social sector expenditures. Finance ministers of the union of India and state governments, across the political parties, have been facing the same problem.

 Large numbers of private enterprises working in various trades and industries (both in manufacturing and service sectors) are the main source of employment in India in unorganized sector besides agriculture. Most of these enterprises belong to Micro and Small scale. These entrepreneurs have little resources and struggle for their bread and butter. Normally they lack in expertise and management capabilities. Hence, they have lower profitability. Availability of skilled workforce is also a big challenge for them.

The unorganized sector in India, by and large, have lower paying capacity. Salaries and wages in this sector are much lower than those of the organized sector. Large numbers of the unemployed workforce in India, who cannot be adjusted in the organized sector, have no choice but to work in the unorganized sector with a lower pay cheque and other facilities. Governments are unable to help the entrepreneurs as the resources left to the government (after paying salaries to government employees) do not allow to do so.

Narendra Modi improved the situation

The present government led by Narendra Modi have done a wonderful job in the last twenty months to improve the situation by taking several innovative measures. Skill development is one of these measures. The government helped farmers by providing Neem coated urea thus promoting biopesticides. The Indian government has been promoting young Indian entrepreneurs with "Startup India and Stand up India" programs and by starting MUDRA that provides easy bank loan to the service sector and manufacturing sector without collateral security.  

However, all these measures are not enough to improve the entire situation. We have to take much more initiatives and work tirelessly to eradicate poverty completely. We need to support the organized private sector continues to be competitive in the global market. They are instrumental to bring India at the top of global manufacturers. Focusing both on the top and the bottom of the Indian population is necessary for overall development.

Government employees

Lastly, we are coming to a radical suggestion. this is very important for the economic growth of the country. Both organized and unorganized private sectors pay their employees according to the rule of demand and supply. However, the government sector pays as per their rule. Everybody knows that service in the government sector is the most lucrative and most preferred one. Government employees have a lion's share in total government spending. Moreover, they have been getting maximum other facilities. Instead, we are facing their ever-growing demands. We already have seven pay commissions who have always increased the salaries of the government employees.

The organized private sector also pays good packages to skilled and talented workers. However, one has to prove his or her efficiency to get a good job and has to continue with hard work to remain in that lucrative job. However, government employees need not prove their efficiency, again and again, to remain in the service. Once employed, one is permanent.

If we compare the salaries and benefits of government employees with those of employees in the unorganized sector, we find a huge gap. They belong to the elite class among employees.  Is it desirable in a democracy to pay much to a particular class depriving large numbers of the population? After all, this is the money of taxpayers. It is also well known that the government officers are not accountable to the public for their work despite efforts by the PM.

All political parties keep mum on this issue. Communist parties support agitations and movements of government employees for salary hikes in many cases. The nation needs a debate on this issue.

Thanks to Modi to act on our suggestions

We are thankful to PM Narendra Modi who has already acted upon six of our eight suggestions. and working on 10 measures to make India the hub for Spiritual Tourism. We are hopeful that the government will act soon on this one. 

Stop future trading of agricultural products: Suggestions to PMO 7

Important update: PM Narendra Modi spoke in the Loksabha yesterday where he had informed that government officers are not showing accountability. His speech may stimulate a national debate. He told this just 4 days after we requested for a National debate. Thanks to PM who listens to the voice of common people. 

Jyoti Kothari
Convener, Jaipur division
Prabhari, West Bengal,
Narendra Modi Vichar Manch

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