Estimating the number of jobs that $24 billion can create in India involves considering various factors such as the sector of investment, the nature of jobs, the cost of living, and the specific economic context. Different sectors have different capital intensities, meaning some sectors create more jobs per dollar invested than others. Key Factors:Sector of Investment: Manufacturing: Typically, investments in manufacturing are more capital-intensive but can create a significant number of jobs. Estimates suggest that $1 million invested in manufacturing can create between 5 to 10 jobs, depending on the specific industry and local conditions. Services: Investments in the service sector, particularly in IT and business process outsourcing, can create more jobs per dollar invested compared to manufacturing due to lower capital costs. Infrastructure: Infrastructure projects also tend to be labor-intensive and can create a substantial number of jobs, though these are often temporary construction jobs.
Average Cost per Job: According to various reports, the average cost to create a job in different sectors in India can range from $10,000 to $50,000.
Multiplier Effect:
Example Calculation:Let's assume a mix of sectors with an average cost of $20,000 per job. References:Manufacturing Sector: Reports indicate that $1 million invested in manufacturing can create 5-10 jobs. Service Sector: IT and service sectors often have lower capital requirements and higher job creation rates. Infrastructure: Infrastructure projects create a mix of temporary and permanent jobs.
Sources: You're welcome! If you have any more questions or need further assistance, feel free to ask. Harvard Business Review reported "Less than half of the 950 million working-age population is actually employed""Bleak as this statistic is, the reality is worse. According to the Periodic Labor Force Survey, some half of all those workers are self-employed, a category that includes “unpaid helpers in family enterprises,”___Harvard Business review, by Bhaskar Chakravorti July 19, 2024, Assume this is is true, then India needs 400 million jobs, however, we only say India need 100 million, using $20,000 a job, then India needs $2 trillion for create 100 million jobs. Based on the information provided, Harvard Business Review reports that less than half of India's 950 million working-age population is actually employed, with a significant portion being self-employed, including unpaid family workers. This highlights the severe employment challenge India faces. Calculation of Required Investment for Job CreationEmployment Needs: Total working-age population: 950 million Employed population: Less than half, so assume around 475 million Self-employed/unpaid helpers: Half of the employed, approximately 237.5 million
Given these assumptions, India needs to create formal employment for many of the self-employed and additional jobs for the unemployed: Investment per Job: Assuming an average cost of $20,000 per job: Total investment needed: 100 million jobs×$20,000 per job=$2 trillion
Summary:To create 100 million jobs in India, an estimated $2 trillion investment is required. This calculation is based on the assumption that each job costs $20,000 to create, reflecting a mix of sectors and employment types. Sources: These sources provide context on India's employment challenges and the potential investment required to create new jobs. As she said, the most important is to create jobs in India, for this, the budget will spend $24 billion, great news, then how many job India needs? According to Harvard Business Review , currently for total work age 950 million Indians, half of it are employed, and half of the employed, are the family helpers, most of them without pay. So half of 950 million is 475 million, half of 475 million is 232.5 million, compare China's 740 million employment, it is reasonable to India to catch up with China, India should have about the same number of jobs, that is to add about 500 million jobs, if assume it needs $20000 to create a job, for 500 million jobs, it needs about $10 trillion. To create jobs in India and address the employment gap highlighted by the Harvard Business Review, the following calculations and insights can be drawn: Employment NeedsWorking-Age Population: 950 million Currently Employed: Less than half, estimated at around 475 million Unpaid Family Helpers: Half of the employed, approximately 237.5 million
Job Creation GoalCost per JobTotal Investment Needed500 million jobs×$20,000 per job=$10 trillion Current Investment PlanBudget Allocated: $24 billion Jobs Created with Current Budget:$24 billion÷$20,000 per job=1.2 million jobs
SummaryAdditional Jobs Needed: 500 million Total Investment Required: $10 trillion Jobs Created with $24 billion Budget: 1.2 million
InsightsWhile the $24 billion budget allocation is a positive step, it falls significantly short of the $10 trillion needed to create 500 million jobs. This gap indicates the need for a more substantial and sustained investment in job creation initiatives. SourcesThese sources provide context on India's employment challenges and the potential investment required to address them.
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