Economic Survey suggests Chinese formula to create 4 crore jobs by 2025

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News:Economic Survey has outlined a strategy on how India can create 4 crore well-paid jobs by 2025 and 8 crore jobs by 2030.

Facts:

Assemble in India for the World:The survey has said that the integration of “assemble in India for the world” with government’s “Make in India” initiative can help: 

  • Create 4 crore well-paid jobs by 2025 and 8 crore jobs by 2030
  • Raise export market share to about 3.5 % by 2025 and 6 % by 2030 and 
  • Exports of network products can provide one-quarter of the increase in value added required for making India a $5 trillion economy by 2025.

Chinese type model:The Survey has suggested a strategy similar to the one used by China to create jobs which is:

  • Specialisation at large scale in labour-intensive sectors especially network products. 
  • Focus on enabling assembling operations at mammoth scale in network products. 
  • Export primarily to markets in rich countries. 
  • Trade policy must be an enabler.

Impact of Trade agreements:The Survey also analyses the impact of India’s trade agreements on overall trade balance:

  • India’s exports increased by 13.4 % for manufactured products and 10.9 % for total merchandise
  • Imports increased by 12.7 % for manufactured products and 8.6 per cent for total merchandise.
  • India gained 0.7 % increase in trade surplus per year for manufactured products and 2.3 % per year for total merchandise.