India needs labour transitions to remove poverty
MUMBAI (Reuters) - India must move its workforce out of roles with low incomes and low productivity if it has to accelerate the pace of poverty eradication, according to a report published by staffing firm TeamLease.
India's population living in poverty reduced to 27.5 percent in 2004, from 55 percent in 1974, but the number of poor in the country has stayed around 300-320 million for 45 years, the firm said in the report.
Reducing poverty requires four levels of transitions for the labour force, it added. These are farm to non-farm, rural to urban, unorganised to organised, and subsistence self-employment to decent wage employment.
According to the report, 60 percent of India's workforce is in agriculture, generating 18 percent of the country's gross domestic product.
"Agriculture (as we know it today) condemns many Indian farmers to poverty because of low productivity," TermLease said.
Out of India's 600,000 villages, 100,000 have less than 200 people, limiting job creation and infrastructure development, which requires size.
It added that 93 percent of Indians work in the unorganised sector, which is "bad for employers, policymakers, employees, tax collectors and cities".
More than 50 percent of Indians are self-employed, reflecting a failure to create employability rather than showing entrepreneurial instincts.
The report said reforms needed were amending labour laws to help employment, encouraging development of new skills to aid employability, and working towards creating a pipeline of talent through education reform. Continued...
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If you have significant expertise in this area and are interested in attending the event, please get in touch with Violaine Plagnol (v.plagnol[at]ccfd.asso.fr) as soon as possible to express your interest.
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