The document summarizes research conducted for a summer internship on India's labor market. It analyzes data from government reports and surveys on topics like employment trends, organized sector employment, labor intensity across sectors, analysis of job schemes like Mudra Yojana and MNREGA, and outlines areas for further research on the demand side of the labor market. Key findings include that half of India's working age population is not in the labor force, most employment growth has been in casual labor, and sectors like apparel and leather have high labor intensity compared to sectors like steel.

1. Summer Internship Presentation
R VISHNURAJ

2. Investment in which
sector/ industry leads
to more employment?
Questions to be researched
Can India completely
employ its labour force?
Are people really employed at
grass root level through schemes
like MNREGA & MUDRA?
Is all the noise about
unemployment represents a very
small percentage of population ?
Is the employment data /
sample survey reliable?
Which is a bigger issue
unemployment or
underemployment?
Questions to be researched

3. Labour Market Product Mix
DEMANDSUPPLY DEMANDSUPPLY
Categorization
Data Availability &
Sources
Migration from
the agriculture
Public/ Private
Sectors
Trends
Sectoral Analysis
Production
Financial Ratios
Domestic
International
Skills
Gen
der
Educa
tion
Enterpri
se Govt.
Skills
Automation
Formulation of problem & Optimization Model
Production /
capital ; etc
PART 1 PART 2LABOUR MARKET-SUPPLY DEMAND FRAMEWORK

4. Government reports and surveys
 Planning Commission – 12th five year plan 2012-2017
 Various Annual Employment – Unemployment Survey (2011-16)
 Economic Survey 2016-17 -Ministry of Finance
 Census 2011
Data Sources Studied
Private Research reports
 KPMG – India Economic Survey 2015-16 – Key Highlights
 Crisil Insights Report – September 2014
 Boston Consulting Group Report – March 2017
 McKinney Global Institute - INDIA’S LABOUR MARKET (discussion
paper- June 2017)
 NASSCOM
Government Organizations
 NSSO (National Sample Survey Office)
 Labor Bureau of India, Ministry of Labor & Employment
 IBEF (India Brand Equity Foundation)
 Data.gov.in ; Mudra.org.in
 NCEUS (National Commission for Enterprises in the
Unorganized Sector)
 NSDC (National skill development corporation)
 Central Statistics Office
 Directorate of Economics and Statistics, Department of
Agriculture & Co-operation
 SEBI (Securities and Exchange Board of India)
 Reserve Bank of India (RBI)
 NASSCOM (National Association of Software and Services
Companies)
 Ministry of skill development
 MNREGA Public data Portal
 MUDRA Public data Portal
 NITI Ayog
 Ministry of Statistics and Programme Implementation
Others
 International Labour Organization (ILO)
 Macroeconomics, textbook by Blanchard Johnson
DATA SOURCES STUDIED

5. Concepts &Definitions
Labour Force
Participation
Rate(LFPR)defined as the number of
persons in the labour force per total number
of people above 15 years of age
Worker Population
Ratio (WPR)defined as the number
of persons employed per total number of people
above 15 years of age
Unemployment Rate(UR)
defined as the number of persons unemployed per number of
people in the labour force (employed & unemployed).
Usual Principal Status (UPS) Approach The
major time criterion based on the 365 days is used to determine the activity
pursued by a person under the usual principal status approach. Accordingly, the
major time spent by a person (183 days or more) is used to determine whether
the person is in the labour force or out of labour force
Usual Principal and Subsidiary Status
(UPSS) Approach is a hybrid one which takes into consideration
both the major time criterion and shorter time period (30 days or more in any
economic activity). Thus a person who has worked even for 30 days or more in any
economic activity during the reference period of last twelve months is considered
as employed under this approach.
Definitions as per Annual Employment- Unemployment survey 2015-16, Ministry of
Labour and Employment
More concepts and definitions are attached in appendix

6. Population trend (Supply side of Labor market )
1. More than half of the labour force in India is
either illiterate or having primary education
2. Only 37 million graduates and above are in the
labour force , which is less than 10%
3. Working population (more than 15 years of age
has grown by almost 90 million in 4 years )
4. There will be around 86 million graduates and
above coming to the labour market by 2015-16
Source :Twelfth Five Year Plan (2012–2017), Planning commission , Census
of India 2011
1210.2 1227.1 1244
1293.5
849.56 871.24 893.19 939.08
586.47
640.63 603.37
690.13
0
200
400
600
800
1000
1200
1400
2011-12 2012-13 2013-14 2015-16
Population In india
Population(millions)
Population 15 years and
above (millions)
Females(millions)
0
200
400
600
800
1000
1200
1400
1991 2001 2011 2012 2013 2014 2015
Population and their education level(millions)
Graduate and above
Diploma
Middle, secodary and
higher secondary
Primary
Below Primary
Illetrate(millions)
The population data is collected and estimated for
calculating absolute numbers of employment and Labour
force
Following are some of the insights
The green area represents graduates in India

7. Employment Trends (UPS approach)
Source: Annual Employment -Unemployment survey ( 2011-12,2012-13,2013-
14,2015-16)Ministry Of labour & Employment Labour Bureau, Census data
• Increase of only 17 million of employees (UPS
approach), whereas total unemployed went
from 18 million to 23 million and labour force
increased by 23 million(2011-15)
• There was an decrease in Regular/ Salaried
wages employees by 9 million and self
employed remains constant.
• The increase in total employed has happened in
casual labour and contract labour.
• Almost half of the working age population is not
looking for job and out of that 75% are females
88 92 103 104
273 310 280
329
0
100
200
300
400
500
2011-12 2012-13 2013-14 2015-16
15 years or above and not
looking for job(millions)
Females not looking for job(millions)
Males not looking for job(millions)
432 423 446 449
18 21 23 23
362 402 382 433
0
200
400
600
800
1000
2011-12 2012-13 2013-14 2015-16
Employment trend(millions)
Not in labour force but 15 years above (millions)
Unemployed
Employed
228 213 209 207
83 86 99 98
120 124 138 144
0
50
100
150
200
250
300
350
400
450
500
2011-12 2012-13 2013-14 2015-16
Sectorwise Employment(millions)
Tertiary and service
sector
Manufacturing and
construction
Agriculture,forestry
and fishing
209.75 203.67 220.62 209.18
85.02 73.52 73.54 76.31
136.81 145.36 151.09 163.84
0.00
100.00
200.00
300.00
400.00
500.00
2011-12 2012-13 2013-14 2015-16
Type of employment (millions)
Self employed Regular Wage/Salaried
Casual labour &contract
Employment data is compiled year wise from
Annual employment report and population data
Half of the population in
the age of 15-60 are not in
labour force

8. Organised Sector Employment
• Manufacturing jobs in organised
sector is not having an increasing
trend , The private sector was not able
to provide more jobs enough to
balance the loss of jobs in public
sector
• The growth rate of total employment
in organised sector is bought down by
decline of public sector jobs
• The major employer in Service sector
is public sector, the jobs in service
sector is also decreasing in public
sector
Source : Ministry of Labour & Employment, Director General of Employment and Training.
Service sector includes
Wholesale and retail trade,
Transport, storage &
communications,
Finance, insurance, real estate
,Community, Social & personal
services and construction.
Manufacturing
sector includes all the
production activities excluding
utilities and mining
Organised Sector in which
the employment terms are fixed
and employees have assured work
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
1995
2003
2005
2007
2009
2011
Service sector organised
employment (millions)
Services
public
sector
Services
private
sector
Total
service
sector0
50
100
150
200
250
300
350
1995
2000
2003
2004
2005
2006
2007
2008
2009
2010
2011
Organised Sector
Employment (millions)
Public sector Private sector
Total
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
Manufacturing
Organised employment
(millions)
Manufac
turing
Private
Sector
Manufac
turing
Public
sector
Total
manufac
truing

9. Labor intensity-Sectorwise
Labour intensity definition (As per BCG-CII report, “INDIA-
Growth and Jobs in new Globalisation” ) - The number of
employees per lakh Gross Value Added.
Manufacturing
Labour intensity
for 2011-12
Services
Labour intensity
for 2011-12
Tobacco 0.58
Accomodation and
catering
1.2
Apparel 0.48 Education 0.75
Leather 0.42 Construction 0.7
Textiles 0.37 Transport and storage 0.6
Food products 0.32
Retail and wholesale
distribution
0.6
Wood paper 0.24
Healthcare and social
work
0.5
Beverages 0.14
Information and
communication
0.2
Metal products 0.15 Financial services 0.1
Automotive 0.15
Source : BCG Analysis , Planning commission , NSSO Survey.
Note : GVA 2011-12 at 2008-09 prices
Insights
1. Tobacco, Apparel, Leather and textile sector are having
high labour intensity in Manufacturing sector
2. Accommodation and catering , Education , construction ,
transport and storage are some of the high labour
intensive sectors in Service sector
3. As most of the growth has happened in less labour
intensive sectors like financial services , automotive
sector can be explained as one of the reasons for
jobless growth in India

10. Demand is a
constraint for the
investment only in
one sector ( who will
buy the products )
Investment Scenarios
Sectors
Investment
(Rs Crores)*
Jobs
(Lakhs)
Jobs
per Rs
lakh
Invest
ment
Apparels (NIC 14) 3156 75.4 23.9
Leather & Footwear (NIC 15) 1624.5 11.6 7.1
Of which
Tanning and Dressing of
Leather & Fur (NIC 1511)
470.8 2.2 4.6
Leather Goods (NIC 1512) 218.3 2.2 9.9
Footwear(NIC 1520) 935.4 7.2 7.7
Textiles (NIC 13) 17814.7 71.3 4
Food Processing (NIC 10) 21119 50.2 2.4
Autos
(NIC 2910 & 2930)
29647.6 7.6 0.3
Steel
(NIC 2410 & 2431)
70528.3 7.8 0.1
Source : Economic survey 2016-17 ,Government of India ,Ministry of Finance
Department of Economic Affairs Economic Division ,ASI 2012-2013, NSSO
68thround Note: *Investment is Gross Fixed Capital Formation
Insights
1.The Apparel sector can employ 23 people for One lakh INR
of investment
2. Steel sector can employ only 1 person with 10 lakhs of
investment.
For more jobs invest
more in sectors where
more jobs can be
generated
Where will
we invest
Formulate an
optimisation problem
with demand as
constraints and
investment in each
sectors as variables

11. MUDRA YOJANA - Analysis
Year 2015-16
For Sishu Category (Loan up to 50K): total no of loans =3,24,01,046
For Kishore Category (Loan 50K – 5Lakh): total no of loans =20,69,461
For Tarun Category (Loan 5-10Lakh): total no of loans = 4,10,417
Average Wage in Kishore Category of employees = Rs 4690
Average Wage in Tarun Category of employees = Rs 7214
MUDRA
2015-16 2016-17
Sishu Kishore Tarun Sishu Kishore Tarun
Total Amount of Loan (Cr) ₹ 62,027.69 ₹ 41,073.28 ₹ 29,853.76 ₹ 83,891.88 ₹ 51,063.12 ₹ 40,357.13
Total No. of Loans
Approved 324,01,046 20,69,461 4,10,417 364,97,813 26,63,502 5,39,732
Average Amount of each
Loan Approved ₹ 19,143.73 ₹ 1,98,473.32 ₹ 7,27,400.67 ₹ 22,985.45 ₹ 1,91,714.22 ₹ 7,47,725.35
Total Employement 324,01,046 124,72,327 30,77,066 364,97,813 160,52,522 40,46,594
New Entrepreneur
(36% of total loans
approved in year
2015-16)
Account Amount
125,57,133 ₹ 58,908.00
Average Loan
Amount
₹ 46,911.98
Here the assumption by the government is that if the Loan amount is less than
50,000 INR - it will just generate one employment per loan. How ever the veracity
of this assumption needs to explored with the help of data of performance /
status of borrowers for the accuracy.
Assuming
everyone who got
the loan has
started a
profitable factoryEffective new employment
(2015-16) = 1.25 Cr

12. MNREGA seems to be a
social security scheme rather
than an employment
generation scheme
MNREGA – OVERVIEW
Source: MNREGA Public Data Portal, Working excel file
attached in Appendix
• Gave jobs to 74million people with
an average of 46days per year
• 86.6million people demanded for
work in 2016-17
• 125.82million households
applied for job cards , Which is almost
half of the total households in India
• 74.4 million cannot be considered as
employed by UPS approach , because only
average 46 days out of 300 days they are given
jobs.
Year Millions Average
Labour
expenditure
disbursed
(lakhs)
Wages/employee/day
Rupees
2016-17 74.42162 46.06 4105236.31
119.7609
2015-16 69.86454 48.89 2957777.32
86.59416
2014-15 59.78101 40.14 2342100.72
97.60341
2013-14 69.18727 46 2735627.57
85.95535

13. Expand our studies to the demand side of the labour
market which includes achievable market size in each
sector and achievable number of employees with a
given investment
Way forward
Formulate an optimisation problem for maximising
the number of jobs with investments in each sectors
as decision variables and total achievable market size
and total investments as constraints
Study about the
demand in product
market and do some
predictions in the
demand of different
products and services
Whether a job can be matched with the correct
skill available in market , what types of skills
should we focus on our labour force and how ?
How are the people coming
into labour market
1. Normal population growth
2. Leaving agriculture
Wait for reliable data being
collected by government
regarding unemployment

14. APPENDIX
Concepts and definitions
Employment and
population working
excel file
MNREGA Working excel
file
MUDRA YOJNA working
excel file
2011-12 2012-13 2013-14 2015-16 2011-12 2012-13 2013-14 2015-16 2011-12 2012-13 2013-14 2015-16
Total 50.80% 48.50% 49.90% 47.80% 52.90% 50.90% 52.50% 50.30% 3.80% 4.70% 4.90% 5.00%
Rural 52.90% 50.50% 52.10% 50.40% 54.80% 52.80% 54.70% 53.00% 3.40% 4.40% 4.70% 5.10%
Urban 44.90% 43.50% 44.60% 41.40% 47.20% 46.10% 47.20% 43.50% 5.00% 5.70% 5.50% 4.90%
Males 75.10% 73.50% 71.40% 72.10% 77.40% 76.60% 74.40% 75.00% 2.90% 4.00% 4.10% 4.00%
Females 23.60% 20.90% 23.80% 21.70% 25.40% 22.60% 25.80% 23.70% 6.90% 7.20% 7.70% 8.70%
Population 1210200000.00 1227100000.00 1244000000.00 1293500000.00 1309.7
Percentage(15 and above) working population 0.70 0.71 0.72 0.73 0.73
Working population(15 years above ) 849560400.00 871241000.00 893192000.00 939081000.00
Males 623724248.00 632434328.81 641144409.61 666656184.75
Females 586469174.00 640630826.00 603369174.00 690130826.00 Employment category 2009-10 2011-12 2012-13 2013-14 2015-16
2011-12 2012-13 2013-14 2015-16 Self employed 43.90% 48.60% 48.20% 49.50% 46.60%
Males not looking for job(millions) 88 92 103 104
Females not looking for job(millions) 273 310 280 329
0.756318833 0.770144574 0.731735626 0.759584674 Regular Wage/Salaried 16.80% 19.70% 17.40% 16.50% 17.00%
362 402 382 433 Casual labour &contract 39.30% 31.70% 34.40% 33.90% 36.50%
Millions 2011-12 2012-13 2013-14 2015-16 100.00% 100.00% 100.00% 99.90% 100.10%
Employed 432 423 446 449
Unemployed 18 21 23 23 2011-12 2012-13 2013-14 2015-16
0.039697543 0.047151277 0.04952381 0.049701789 Self employed 209.75 203.67 220.62 209.18
Regular Wage/Salaried 85.02 73.52 73.54 76.31
2011-12 2012-13 2013-14 2015-16 Casual labour &contract 136.81 145.36 151.09 163.84
Labour force 0 0 0 0 431.58 422.55 445.26 449.33
2011-12 2012-13 2013-14 2015-16
Agriculture,forestry and fishing 52.90% 50.30% 46.90% 46.10%
Manufacturing and construction 19.30% 20.30% 22.20% 21.80%
Tertiary and service sector 27.80% 29.40% 30.90% 32.00%
Number of employees 2011-12 2012-13 2013-14 2015-16
Agriculture,forestry and fishing 228 213 209 207
Manufacturing and construction 83 86 99 98
Tertiary and service sector 120 124 138 144
Education (millions) 1991 2001 2011 2012 2013 2014 2015
0.996550357 0.933222037 0.370229324 Illetrate(millions) 479.2 467.9 447.2 445.7 444.1 442.6 441.1
1.035521421 2.009933775 0.150757513 Below Primary 90.6 164.9 182.1 188.6 195.3 202.2 209.4
1.029341459 1.783155857 0.152496068 Primary 103.3 146.7 184.2 189.6 195.2 200.9 206.8
1.041101992 2.238028169 0.26310125 Middle, secodary and higher secondary 142 207.3 317.8 330.9 344.5 358.6 373.4
1.055834875 2.964285714 0.00687143 Diploma 2.8 4.1 8.3 8.8 9.3 9.8 10.3
1.061763213 3.315533981 0.056544416 Graduate and above 20.6 37.7 68.3 72.5 77.0 81.8 86.8
Total 838.5 1028.6 1207.9 1236.0 1265.3 1295.8 1327.7
Source : Census data
The status of activity on which a person has spent
relatively longer time of the preceding 365 days
prior to the date of survey is considered to be
the usual principal activity status of the
person.The Usual Principal Activity status (UPS),
written as Usual Status (PS), is determined using
the majority time criterion and refers to the activity
status on which h/she spent longer part of the
year. Principal usual activity status is further used
to classify him in/out the labour force. For
instance, if an individual was ‘working’ and/or was
‘seeking or available for work’ for major part of the
year preceding the date of survey then h/she is
considered as being part of the ‘Labour Force’. For
example if an individual reports as having worked
and sought/available for work for seven months
during the year or having sought or available for
work for seven months then h/she is classified as
being in the Labour Force.
The second step is to ascertain the Employed /
Unemployed status of the individual, once again
the majority time criterion is used to know whether
he ‘worked’ (employed) or was ‘seeking/available
for work’ (unemployed) for longer part of the total
time he was in the labour force. For example if a
person reports as having worked and
sought/available for work for a total of seven
months, and out of these seven months he was
working only for two months and reported
seeking/available for work for remaining five
months, then h/she will be classified as
‘Unemployed’ on the usual principal status basis.
The final step is to calculate unemployment rate as
the proportion of persons classified as unemployed
on this basis expressed as a percentage of all
those classified as being in the Labour Force.
2011-12 2012-13 2013-14 2015-16
Population 1210200000.00 1227100000.00 1244000000.00 1260600000.00
Percentage(15 and above) working population 0.70 0.71 0.72 0.73
Working population(15 years above ) 849560400.00 871241000.00 893192000.00 915195600.00
Males 623724248.00 632434328.81 641144409.61 649699873.60
Females 586469174.00 640630826.00 603369174.00 657230826.00
millions 2011-12 2012-13 2013-14 2015-16
Population 1210.20 1227.10 1244.00 1293.50
Percentage(15 and above) working population 0.70 0.71 0.72 0.73
Working population(15 years above ) 849.56 871.24 893.19 939.08
Males 623.72 632.43 641.14 666.66
Females 586.47 640.63 603.37 690.13
Worker participation ratio Labour force participation ratio Unemployment rate
0
200
400
600
800
1000
1200
1400
1991 2001 2011 2012 2013 2014 2015
Population and their education level(millions)
Illetrate(millions) Below Primary
Primary Middle, secodary and higher secondary
Diploma Graduate and above
0
100
200
300
400
500
2011-12 2012-13 2013-14 2015-16
15 years or aboveand not looking for
job(millions)
Males not looking for job(millions) Females not looking for job(millions)
432 423 446 449
18 21 23 23
362 402 382 433
0
100
200
300
400
500
600
700
800
900
1000
2011-12 2012-13 2013-14 2015-16
Chart Title
Employed Unemployed Not in labour force but 15 years above (millions)
228 213 209 207
83 86 99 98
120 124 138 144
0
100
200
300
400
500
2011-12 2012-13 2013-14 2015-16
SectorwiseEmployment(millions)
Agriculture,forestry and fishing Manufacturing and construction
Tertiary and service sector
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
500.00
2011-12 2012-13 2013-14 2015-16
Chart Title
Self employed Regular Wage/Salaried Casual labour &contract
State
Name
Total
househol
dsapplied
forjob
card
Totaljob
cards
issued
Total
househol
ds
demand
edwork
Total
persons
demande
dwork
Total
househol
ds
allotted
work
Total
persons
allotted
work
Total
househol
ds
worked
Total
persons
worked
State
Name
Millions Average effective
Labour
expenditure
disbursed
(lakhs)
2016-17 12582784912175332355897339 8667041255764432 86351196 50417904 744216162016-17 74.42162 46.06 11.42619878 4105236.31
2015-16 12818768412569957252232835 8086934352099709 80565650 47276883 698645412015-16 69.86454 48.89 11.38559136 2957777.32
2014-15 12526154012357310545282094 6941210145200981 69219250 40617496 597810052014-15 59.78101 40.14 7.998698469 2342100.72
2013-14 12362445112200887248899936 7706197548850178 76967110 45368145 691872742013-14 69.18727 46 10.60871535 2735627.57
Type of Loan
Total
Amount of
Loan (Cr)
Total No of
Accounts/Loans
NAME OF THE PROFILE
Loan
Amount
Loan Ratio
No of
employess
No of
accounts
Total
Employement
Wages
pm
Total Wages
pm
TOTAL
Sanitary Napkin Manufacturing Project 1,29,906 0.12878502 5 2,66,516 13,32,578 7,000 18656,08,965
General Engineering Workshop 1,51,500 0.11042869 5 2,28,528 11,42,639 70,000 159969,50,375
Rubberised Coir Mattresses 4,45,500 0.03755319 17 77,715 13,21,153 42,500 33028,81,649
Beauty Parlor 2,40,000 0.06970811 4 1,44,258 5,77,033 20,000 28851,64,264
Project Profile on Manufacturing of Palm Plate 2,48,062 0.06744260 3 1,39,570 4,18,709 24,000 33496,75,920
Project Report on Readymade Garments 3,32,560 0.05030655 10 1,04,107 10,41,074 35,000 36437,60,497
Project profile on Curry and Rice Powder 4,99,125 0.03351855 3 69,365 2,08,096 23,000 15954,02,628
Project profile on Flour Mill 1,25,000 0.13383957 6 2,76,976 16,61,855 39,000 108020,55,005
Banana Fiber Extraction and weaving 1,00,000 0.16729946 9 3,46,220 31,15,977 12,500 43277,46,396
Light Engineering(Nuts, Bolts, Washers, Rivets etc.) 4,51,400 0.03706235 5 76,699 3,83,495 28,500 21859,24,188
Metal Based Industries: Agricultural Implements, Cutleries& Hand Tools 2,16,000 0.07745345 3 1,60,287 4,80,861 16,000 25645,90,457
Project profile on Bakery Products 4,46,500 0.03746908 5 77,541 3,87,704 30,500 23649,94,671
Project profile on Steel Furniture 3,45,225 0.04846099 4 1,00,288 4,01,153 36,000 36103,72,835
TOTAL 37,30,778 1 79 20,68,070 124,72,327 3,84,000 584951,27,850
Toilet Soap Manufacturing Unit 10,00,000 0.05833208 9 23,940 2,15,464 40,000 9576,19,078
Tomato sauce Manufacturing Unit 5,86,500 0.09945794 6 40,819 2,44,915 57,000 23266,95,970
Project profile on Roasted Rice Flakes 9,52,000 0.06127319 10 25,148 2,51,476 24,000 6035,41,436
Computer Assembling 6,29,300 0.09269359 4 38,043 1,52,172 60,000 22825,81,626
Manufacturing of Paper Products (Paper Cups) 10,00,000 0.05833208 4 23,940 95,762 32,000 7660,95,262
Project Report on Foot Wear 10,00,000 0.05833208 12 23,940 2,87,286 82,000 19631,19,110
Project profile on Desiccated Coconut Powder 10,00,000 0.05833208 15 23,940 3,59,107 1,10,000 26334,52,465
Project report on Wooden Furniture Manufacturing Unit 7,48,600 0.07792156 5 31,980 1,59,902 36,000 11512,91,972
Manufacturing of Paper Napkins 8,35,870 0.06978607 5 28,641 1,43,207 27,600 7905,02,308
Project Profile on Pappad Manufacturing 8,18,000 0.07131061 5 29,267 1,46,335 46,250 13536,02,762
Project Report on Pickle Unit 7,00,000 0.08333154 6 34,201 2,05,204 57,500 19665,39,178
Project Report on Note Book Manufacturing 10,00,000 0.05833208 4 23,940 95,762 32,000 7660,95,262
Dairy Products 7,35,000 0.07936337 7 32,572 2,28,005 37,500 12214,52,906
Project profile on Detergent Power and Cakes 7,77,810 0.07499528 16 30,779 4,92,469 1,11,000 34165,06,527
TOTAL 117,83,080 1 108 4,11,153 30,77,066 7,52,850 221990,95,861
TOTAL
4,10,41729,854Tarun
- -Sishu 62,027.69 3,24,01,046
20,69,46141,073.28Kishore
Loan amount is less than 50,000 INR - it will just generate one
employment per loan.
- - 3,24,01,046 3,24,01,046 3,24,01,046

15. Sectors
2016–17
(Apr-Nov 2016)
Growth
indication
Ores and minerals 35.3
Positive growth
Marine products 20.6
Gems and jewellery 11.6
Electronic goods 3.0
Engineering goods 0.9
Chemicals and related
products
(0.5)
Negative growth
Agriculture and allied products (3.0)
Leather (4.8)
Textiles (5.2)
Petroleum products (9.8)
Sector Wise Growth Rate
KPMG – Insights Indian Economic Survey 2016-17
Source :
KPMG – key highlights of Indian Economic Survey 2016-17.
 In FY17, the government’s final consumption
expenditure emerged as the major driver of GDP
growth - an increase of over 23 per cent as against
2.2 per cent in FY16.
 Due to a decline in global crude oil prices, imports
declined by 7.4 per cent in 2016-17 in value (till
January 2017).
 The trend of negative export growth reversed a bit
with exports registering a growth of 0.7 per cent
during 2016-17 (till January 2017).
 Petroleum, Oil and Lubricants (POL) imports
declined by 10.8 per cent in 2016-17 (till January
2017) whereas non-POL imports declined by 2 per
cent.

16. Estimated Population and Labour Force
2012-13 2013-14 2014-15 2015-16 2016-17
Population (in
million)
1232.4 1250.1 1267.6 1285.0 1302.2
Labour Force (in
million)
505.3 516.7 528.2 539.7 551.3
Per '000
population
(410) (413) (417) (420) (423)
Source: Estimated by EPWRF
Planning Commission - Insights
Source :
Government Of India Labour, Employment & Manpower (Lem) Division Planning Commission
Article Name : Report Of The Working Group On Employment, Lanning & Policy For The Twelfth Five Year Plan (2012-2017)
In line with the above data, estimated number of unemployed
people declined sharply by 6.3 million person-days under CDS –
it was 28 million person-days on a day in 2009-10 vis-à-vis 34.3
million person-days on a day in 2004-05. Under UPSS, the
decline was to the tune of 1.5 million persons while under CWS
it was 3.9 million persons over this 5 year period.
Under all the three approaches,
number of persons/ person-days in
the labour force and work force
were higher in rural areas vis-à-vis
urban areas.
NUMBER OF PERSONS IN THE LABOUR FORCE
FIGURES IN MILLIONS 2004-05 2009-10 INCREASAE
UPSS 468.8 469 0.2
CWS 445.2 450.4 5.2
CDC 417.2 428.9 11.7

17. CRISIL - Insights
Status-quo scenario
• assumes overall growth will continue to
be led by the capital- intensive
manufacturing and services sectors.
• under status quo, 41 million non-
agriculture jobs could be added between
fiscals 2012 and 2020.
• Nearly 20 million will be in services and
about 24 million in construction with
utilities adding another 1 million, but the
manufacturing sector would report 4
million fewer jobs.
• Given the total addition of about 59
million to the labour force till 2020, this
will imply 18 million people diverted to
the farm workforce.
Pro-jobs scenario
• assumes overall growth is led by faster growth in
the labour-intensive manufacturing and services
sectors and hence productivity improvements are
slower.
• there could be 69 million additional jobs created
outside agriculture.
• That will not only create opportunities for the 59
million people estimated to enter India’s
workforce between fiscals 2012 and 2020, but
also draw 10 million people out of low
productivity farm sector.
• In this scenario, the services sector will alone
create about 44 million jobs, while manufacturing
will create another 11 million.

18. In this report, Crisil define labour-intensive sectors as those requiring
more than 5 workers (above average) to produce Re 1 million of real
output (GDP).
Wood and products, textiles, leather, food products and related sectors,
and non-metallic mineral products, are the most labour-intensive in India,
requiring more than 10 workers to produce Re 1 million of output.
Capital-intensive sectors - Their share of India’s GDP has risen to 11%
during fiscals 2011 to 2013, from 6.8% in the 1970s. But they have low
labour intensity
A push to labour-intensive manufacturing through changes in labour
laws, along with improvement in physical infrastructure and power
availability, can create nearly 11 million manufacturing jobs by 2020
compared with a loss of 4 million under status quo.

19. Crisil - Insights
To arrive at these, they
mapped the National
Sample Survey Organisation
(NSSO) employment data
with GDP data classified as
per the National Industrial
Classification (NIC) 2004-
05.
Labour-intensive manufacturing
contributes only 5.5% of GDP
currently- four manufacturing
sub-sectors -- textiles, food
products and related sectors,
non-metallic mineral products
and transport equipment -- can
drive employment creation over
the next 5 years
The labour-intensive
services sectors such as
trade, hotels & restaurants,
education & health, and
personal & community
services can add another 36
million jobs by 2020. These
services will benefit from
changing consumption
patterns at households, a
focus on urbanisation, and
a push to education and
better healthcare
69 million jobs can be
added in the non-
agriculture sector by 2020
if the government pursues
a projobs policy compared
with 41 million under status
quo.

20. Manufacturing Sector Service Sector
• Textiles sector: labour intensity of 16 - share in manufacturing
employment (34%) - high share of manufacturing output
(11%). - 17 million workers in 2012 - 5,000 units with a
turnover of less than Rs 5 million.
• Food and related products: labour intensity at 9 in fiscal 2012
- employed about 8 million workers (17% of manufacturing
employment).- 10% of manufacturing output
• Non-metallic products: labour intensity of 8 in fiscal 2012, -
contributes about 6% to manufacturing output – 5 million
workers.-
• Automobiles : low labour intensity of 2, and employs only 1.3
million people in manufacturing,- employ another 3.2 million
spare part etc - the automobile sector has one of the highest
potential in India - about $90 billion in fiscal 2014 to over $185
billion in fiscal 2020
• labour intensity at 3.7 in fiscal 2012 - 80 million jobs in fiscal
2012
• Education and health: highest labour intensity,6 people to
produce Re1 millions of output-12.5 Mn
• Trade, hotels and restaurants: abour intensity of 5.4 and
contributes nearly 11% of total employment in India- hotels 7
million people in fiscal 2012 - trade employed 39 million –
• Community, social and personal services: sector provided 20
million jobs in fiscal 2012 - requires 5 people to produce Re 1
million of output - labour intensity is the highest in
personal/household services, where 23 people are required to
produce Re 1 million of output
CRISIL – Insights CONTD.
Capital-intensive services such as finance, insurance, real estate and business services have low labour intensity but
employed 10 million people in fiscal 2012, --- share of GDP rising from 13% in fiscal 1997 to 19% in 2013

21. Types of Surveys Available in InidaMcKinsey - Insights
Main surveys and reports
Agency Survey name Frequency Survey unit Focus
Population covered and
methodology used
Sample size of the
last round
National
Sample
Survey
Organization
Employment and
unemployment
Quin-
quennial
Households
Overall level and structure of
employment and unemployment in
India
Entire population
covered via random
sampling
100,000
households
Labour Bureau
Annual
employment/unem
ployment survey
Annual Households
Overall level and structure of
employment and unemployment in
India
Entire population
covered via random
sampling
1,50,000
households
Quarterly report on
changes in
employment in the
selected sectors
Quarterly
1
Establishment units
Change in employment of selected
export- oriented and labour-
intensive sectors following the
global economic slowdown
Pan-India coverage via 2-
stage stratified sampling
1,936
enterprises
Quarterly report on
employment
scenario
Quarterly Establishment units
Employment trend in non-farm
industrial economy having >10
workers
81% of all employment
units having >10 workers
via fixed panel method
10,600
enterprises

22.  Problems with survey
The surveys have captured headlines, but the samples they cover
are small, and conclusions about aggregate national trends
derived from them may not be accurate. The expanded sample
covers about 81 percent of enterprises with more than ten
employees, which sounds like a substantial proportion. However,
since most enterprises in India are smaller in size, in reality the
sample represents only about 1.4 percent of all enterprises in the
country, accounting for 21 percent of non-farm employment.
Source : McKinsey
 Sources / Methodologies
The employment and unemployment surveys conducted by the Labour
Bureau over the last four years are a fairly robust set of sample surveys.
We analyse the annual data from them based not on their publication
dates but on the reference period for which the data were collected in
each round, to more closely map labour market trends to economic
trends happening at the same time.8 The data are available only up to
2015
The surveys can be found on the Labour Bureau’s website,
http://labourbureau.nic.in/. Until 2015, the surveys reflected data
gathered from 2,000 enterprises in textiles, leather, metals,
automobiles, gems and jewellery, information technology, and
transport. In 2016, the survey was expanded to cover 10,000
enterprises across manufacturing, construction, trade, transport,
education, health, hotels and restaurants, and information
technology and business process outsourcing.
Current sources of data fulfil their main purpose of assessing some
labour market trends, particularly labour force participation rate and
employment shifts, but are not really designed to assess the wellbeing
of the workforce or the extent of change in gainful employment.
The Survey does not cover the creation of more fulfilling and
better-paying jobs that are more productive and that mean an
enhancement in work “quality” (a term used to describe other
aspects of work desired by the labour force, such as safety,
cleanliness, flexibility, income security, skills, and intellectual
stimulation).

23.  Exports of goods and services witnessed a
growth of 2.2 per cent (Advanced Estimates) as
against a y-o-y decline of 5.2 per cent in FY15,
owing to partial recovery in commodity prices.
The imports witnessed a y-o-y decline of 3.8 per
cent due to lower gold and other bullion
imports.
KPMG – Insights
Indian Economic Survey 2016-17
CONTD.
 Despite an expected decline in the
growth rate owing to slowdown in
manufacturing, decline in budgetary
capital expenditure and
demonetisation, India is expected to
continue as the fastest growing large
economy.
 India’s Wholesale Price Index (WPI)
based inflation witnessed a reversal
from -5.1 per cent in August 2015 to
3.4 per cent in December 2016 due to
rising crude oil prices in the
international market towards the end
of 2016.
1.9
-5.2
2.2
1.1
-1.2
-3.8
-6
-4
-2
0
2
4
2014 2015 2016
Exports & Imports of Goods & services
- Growth Rate - Y-O-Y
Exports Imports

24. McKinsey – Insights CONTD.
Declining labour participation = more young
people have stayed in education and/or that
more women from households which were
once in extreme poverty but have now
entered the middle class no longer need to
work in low-productivity jobs.
The government has raised public
investment in roads, railways, rural
development, power, telecom, etc. ,
creating work opportunities for an
estimated 7 million workers, at wages that
are 70 percent higher than for average
farm workers.
Data from India’s Labour Bureau on
employment creation –
fewer than 2 million jobs are being
created annually
working age population grows by
some 16 million ever year rapidly growing sectors of cab-hailing
platforms, e-commerce, digital financial
services through networks of banking
correspondents, and lending for micro
entrepreneurship and self-help groups have
improved income opportunities for 18 to 22
million workers in about the past 3 years.
Advances in automation technologies are affecting
India’s IT and business process outsourcing sectors.
These sectors have remained net job creators, and
the industry estimates that companies could hire up
to 2.5 to 3 million more workers by 2025

25. agriculture shrank by 26 million while
non-farm jobs rose by 33 million,
largely driven by rapid economic
growth between 2013 and 2015
From 2013 to 2016, labour bureau surveys
suggested that India’s labour market had
meagre job growth in the range of 150,000
to 400,000 jobs each year
From 2014 to 2017, NASSCOM suggest, the IT and business process outsourcing sectors created
between 550,000 and 600,000 incremental direct.
NASSCOM expects the revenues of Indian IT companies to rise to $350 billion in 2025.
Even as worker productivity grows further, the sector could add some 2.5 million to three million new
jobs by 2025.
In Conclusion the creation of non-farm jobs and shift of work away from agriculture— itself an aspect of the move to gainful
employment—is a structural trend in India that has been aided by a period of relatively strong economic growth.
However, there is a paucity of timely and reliable labour market data, with virtually none currently available after the
reference period of 2015. Furthermore, the available data do not enable us to obtain a clear picture of shifts in the wellbeing
of India’s workforce.
McKinsey – Insights CONTD.

26.  GDP growth 8.1% but job growth only 2.1%(2004-
2012).
 In India, the service sector CAGR 8.6%(2010-2014) (
China 8.4%, US 1.8%)
 5-7 million join workforce in India , 5 million leave
agriculture , 2-3 million educated look for jobs
 Assuming it takes 5 years to employ the present 10
million , estimate a total annual demand of 12-15
million non agriculture jobs per annum
 Only 8 million added every year from 2004-2012 ,
there is a gap of 4-7 million
 Employment generation per economic growth in
India is 2/3 of global average
 92% of India's employment is currently in informal
sector
 52-69% of work is at risk of automation in India
BCG - Insights
Source : Boston Consulting Group.
Article Name : INDIA:GROWTH AND JOBS IN THE NEW GLOBALIZATION
 Majority of Growth GVA in labour intensive
industry
 Growth =Capital%+Labour%+TFP% ; labour is
having diminishing impact
 Types of services - Emerging services(<1%
contribution of GDP), Underpenetrated(1-5%
contribution GDP), Evolved services (>5% GDP)
 Manufacturing is unlikely to be a significant job
creator in the medium to long term

27. Indian IT-BPM Industry
9.3% relative share in
national GDP.
45% in total service
exports
More than 7 billion
highest investment
sector (includes 5billion
start up investment )
Global technology
spending expected to
regain growth in 2016
FY2017P: Exports**
growth:10-12 per cent
FY2017P: Domestic*
growth:11-13 per cent
Expected Net
Employment* addition
~2 lakh
NASSCOM - Insights
Source : NASSCOM
Article Name : Indian IT-BPM Industry