''To generate employment, proper attention must be given on increasing domestic demands as it would increase consumption rate, which ultimately enhance the employment rate,'' CPI (M) Polit Bureau Member and Rajya Sabha MP Sitaram Yechury told reporters, while releasing a study on 'Relationship between GDP and Employment' brought out by Industry chamber Assocham.
Calling this growth as 'jobless growth', Mr Yechury advocated a national policy for conventional mineral resources with specific focus on their region-wise reserves, to stop the export of mineral resources, so that it could be utilised within the country.
Expressing concerns over the 3.74 per cent decline of employment in private sector, Mr Yechury said to sustain the current GDP rate of 8.3 per cent, we must nurture domestic demands which need larger level of investment. It, finally, results in huge consumption.
He suggested some of the key areas of economic activities like manufacturing and services particularly in textiles, steel industry, pharmaceuticals, gems and jewellery, IT and ITES and hospitality industry, should be given more attention.
Speaking on the labour reforms, he said that his party has supported some reforms in the existing labour policy such as opposing hire and fire policy but the UPA government is yet to unveil its mind as to what labour reforms they would want to usher into.
Mr Yechury said that the country needs larger quantum of public investments in order to make strong infrastructure that would generate employments.
He emphasised on the capital intensive upgradation for a country to survive, but this should be done in such a fashion so that the gap between the GDP and employment rate would lessen.
Mr Yechury agreed with the findings of the study which revealed that between 1998-2003, employment rate reduced by 4.32 per cent in India's public sector while in private sector, it fell by 3.74 per cent.
Commenting on the findings, Assocam President Anil K Agarwal said that decrease in jobs in the private sector was evident in areas of agriculture, mining, manufacturing and construction.
Mr Agarwal said the reason for drop in jobs are due to global competition which led to cost reduction and introduction of voluntary retirement scheme.