Question: Can the strategy of regional resource-based manufacturing help in promoting employment in India?
Answer: Uttar Pradesh had announced a regional resource based manufacturing policy that aimed at creating manufacturing industries across the state. This would allow equal distribution of economic development across the state.
How regional resource based manufacturing helps in employment generation
- Focus on specialisation
With primary focus on particular type of resource, people with specific skill set are required to work in such industries. This will create demand for people with that particular ability to get employment.
Ex: Alcohol distillery and manufacturing.
- Cost cutting
By locating industries to the source location, the companies can cut costs from transportation. The money saved from transportation can be used to hire more capable employees.
- Creating supplementing Industries
When a large industry of a particular kind is set up, various small industries in form of MSME’s are established that act as suppliers of smaller items required by the larger industry. These small industries create large number of employment.
Ex: Gurugram in Haryana is dedicated to automobile manufacturing. The presence of automobile manufacturing has enabled smaller industries to develop, which supply smaller items like nuts, axles, cranks etc to the large Industry.
It is necessary to provide legal protection to specialised manufacturing in order to prevent misuse brand name by other individuals without authorisation.
Thus, we can say that region based manufacturing can indeed boost employment if actions are taken to protect their interests and help them thrive.