Economic Survey suggests “Assemble In India Model” to create 80 million jobs

The Economic Survey 2019-20 suggests a new idea of “Assemble in India” model to create 80 million jobs in the country. The model will also help India achieve its 5 trillion USD economy target.

Highlights

The report suggests that India should benefit from the China-US trade war situation by increasing export manufacturing. It also says that China has been performing well in exports mainly due to large scale labour intensive activities. Chinese import components and assemble in China. This creates immense job opportunities.

Assemble in India Model

The Assemble in India for the world should be integrated with Make in India. This will increase export market share by 3.5% in 2025 and 6% in 2030.

Current Scenario

India contributes only 2% of world trade. With China-US trade war, firms are looking for alternative locations. Also, labour shortages and increase in wages in China are ideal for India to grab global markets.

These opportunities are ideal for India to make similar trajectory as that of China as its labour-intensive sectors are slowly being vacates.

Month: Current Affairs - February, 2020