Jobs, jobs, where are they in India?
Jobs are there in India. But they are in Small and Medium Sector in India. They are are in the informal economy. They are there are in the small Service Sector. But these sectors are not sleek. The owners do not have associations to represent themselves with the Government. They do not have a voice and the media has no interest in them because they cannot afford the cost of PR of the large business houses.
Unfortunately, these small businesses are now collapsing as the new GST laws make them unviable with their complexity of compliance and the fear that the Government instills of non-compliance.
SMEs and MSMEs in the steel industry are suffering as their supply chains are being destroyed with requirements of Bureau of Indian Standards which is not possible for international steel mills that supply intermittently for the demand of end customers whose requirements cannot be met from the domestic suppliers. In any case, domestic mills have raised their prices stratospherically. Already more than 20% of the auto components manufacturers have gone out of business and exports are non-viable with the increased raw material prices and increased working capital requirements thanks to GST.
Demonetization started the downturn as the disruption in the cash economy has worked its way upwards with reduced spending by consumers. It is a case of multiple self-inflicted wounds that are creating this contraction and adding to the loss of jobs through automation.
Our recommendation is to move away from adhocracy. Think beyond bullet trains. Think incrementally and long term.
All that shines is not gold. In fact much of the shiny stuff is built on unsustainable debts that create NPAs and bankrupt countries.