Infra sector can create additional 5L jobs in U'khand:Assocham

Industry body Assocham today advised all political parties in poll-bound Uttarakhand to give priority to infrastructure development in their manifestos and said the sector has potential to create an additional 5 lakh jobs in the next five years.
In an agenda submitted to all political parties and seeking its inclusion in their poll manifestos, the business chamber said, "...Infrastructure development in Uttarakhand if gainfully tapped shall generate additional 5 lakh jobs in next five years in food processing, tourism, herbal medicines, small and medium enterprises (SMEs) sector."
Workforce dependability on industrial sector indicates that the state's industrial sector employability has also witnessed a significant increase from the level of 2001, it said in a report.

According to 2011 census, workforce dependent on industry is 3.0 per cent of the total workforce in the state which was just 2.3 per cent in 2001.
The industrial sector growth performance has been credible in the recent years as industrial performance has recorded highest growth amongst the states and much better than all India average growth.
The state grew at a CAGR of 16.5 per cent during 2004-05 to 2014-15 (base price is 2004-05), noted the Assocham pre-election agenda.

All the political parties should focus on SMEs promotion based on the locally available raw materials.
"If we look GVA (Gross Value Added) at the new base 2011-12, the compound annual growth of industries sector suggests that the state's industrial sector growth rate is much better than all India average growth rate. The state has recorded 5.2 per cent growth during 2011-12 to 2015-16 while 4.4 per cent recorded at all India level during the same period," Assocham Secretary General D S Rawat said.

The service sector plays an important role in Uttarakhand's economy but it is amongst one of the few states of India which has a lower share of services sector when compared with the national average of services sector contribution to Indian GDP.
Currently, service sector contribution to the state economy is 51.0 per cent of GSDP in 2014-15 which was 49.5 per cent of GSDP in 2004-05, noted the report.
The service sector has recorded a compound annual growth rate of 12.3 per cent during 2004-05 to 2014-15 which is highest amongst major states in India.
If we look GVA (Gross Value Added) at the new base 2011-12, the compound annual growth of services sector suggests that the state's services sector growth rate is better than all India average growth rate.

The state has recorded 7.5 per cent growth during 2011-12 to 2015-16 while 7.0 per cent at all India level during the same period.
The service sector growth rate has declined from its peak level of 20.4 per cent in 2007-08 to reach its lowest level of 5.8 per cent in 2012-13 thereafter it has recorded upswing.
In 2015-16, services sector gross value added was 11.8
per cent. The growth performance of service sector is encouraging as the state has ample potential for growth and expansion of services sector.
The policy makers should aim to expand the sector so that it generates additional economic activity and employment for the state, said Rawat.

Uttarakhand's robust economic growth has encouraged investors to invest in the state.
The state's outstanding investment trend is suggesting robust growth performance especially after 2012-13.
As on 2015-16, the state has recorded Rs 1.45 lakh crore live investment projects with a positive growth rate of 23.7 per cent but in the past, it has recorded sharp deceleration in its investment growth from its peak level of 44.6 per cent 2008-09 to negative growth rate of 3.9 per cent in 2012-13.
The state's live investment growth rate is much better than India's live investment growth rate since in 2013-14.
Uttarakhand has recorded negative growth rate of 3.9 per cent in 2012-13 thereafter positive growth of 1.9 per cent in 2013-14, 13.7 per cent in 2014-15 and 23.7 per cent in 2015-16.

At the same time in India, live investment has administered positive growth rate of 1.9 per cent in 2013-14, about 7.7 per cent in 2014-15 and 6.6 per cent in 2015-16, adds the paper.
The under implementation rate has declined from its peak level of 63.5 per cent in 2004-05 to 38.6 per cent in 2015-16.
Under implementation projects have been a major concern for policy makers in India as well as for most of the states in India.
All states government as well as Central Government has been trying to curb down the under implementation rate and many initiatives have been taken by both.

However, analysis suggests that Uttarakhand has recorded faster implementation of projects that has resulted in a significant fall in the under implementation rate of the projects.
The state has been witnessing a strong demand for employment with large portion of population coming into the working age group of population.
As per Assocham estimate, about 32.1 per cent of population falls in the age group of 15 to 30 years. About 4.5 million people from this group are already a part of the workforce.
The current level of workforce participation rate stands at 38.6 per cent, therefore in order for the working age group of 15-30 years also to achieve a similar rate an additional 5 lakh jobs will need to be created in the next five years.

If the state has to meet the potential demand of employment, the state needs to grow at a double digit rate.
The newly government must look at this on priority basis which will accelerate investment activities in the state as well as it will encourage private sector to invest in the state.
Assocham Special Task Force on Uttarakhand, after generating debate on several critical issues on the eve of the elections in the state, has formulated a "Sustainable Action Plan" to achieve double digit growth.
Assocham believes state achieving double digit growth on a sustainable basis will help the state to become one of the front ranking states in the country.