Overall it has been observed that despite India’s rapid economic growth, the employment scenario continues to be sluggish

Overall it has been observed that  despite India’s rapid economic growth, the employment  scenario continues to be sluggish, however, increase in exports paves the way to generate large scale employment taking into consideration the labour – intensive advantage which India possesses. The enclosed study on Export Employment by Exim Bank of India highlights following points.

Key Highlights

ü  Employment growth have been sluggish despite India’s fast economic growth since the 1990s.

ü  Export growth has the potential to generate large scale employment as India has a comparative advantage in labour – intensive products.

ü  The Study observed that the total number of jobs supported by aggregate Indian exports (merchandise plus services) increased from about 34 million in 1999-00 to 62.6 million in 2012-13, with a growth rate of 3.4% per annum.

ü  The study also identifies a number of specific sectors where exports can contribute to significant employment growth, directly as well as through backward linkages.

ü  From the period 1999-2000 to 2012-2013 employment growth in export sector was faster than that of country’s total employment.

ü  The contribution of indirect job creation increased, from 38% in 2007-08 to 50% in 2012-13

ü  While the total number of jobs supported by exports increased significantly, jobs supported per million dollar (or billion rupees) worth of exports declined over the years. US$ 1 million worth

ü  of exports supported 638 jobs in 1999-00, which has declined to 138 in 2012-13.

ü  Policies specifically targeting export growth from the manufacturing sector can reap rich dividends in terms of creating large scale employment opportunities for various skill categories.