Model Answer

Productive employment provides adequate income, greater stability and opportunities for skill development. Labour-intensive manufacturing can facilitate India’s structural transformation by shifting workers from low-productivity activities towards formal and higher-productivity jobs.

Potential for productive employment

1. Labour-intensive industries can absorb workers at scale. e.g: Textiles, apparel, footwear and food processing.
2. Manufacturing can facilitate movement of workers from agriculture to higher-productivity activities.
3. Relatively short training periods enable faster workforce absorption. e.g: Apparel production roles.
4. Women’s employment can increase substantially. e.g: Women constitute around 70% of Tiruppur’s workforce.
5. Export-oriented industries can simultaneously generate jobs and foreign exchange.

Lessons from Tiruppur

1. Industrial clusters create economies of scale through specialised firms. e.g: Tiruppur’s knitting, dyeing and garment units.
2. Common infrastructure reduces costs for smaller enterprises. e.g: Common Effluent Treatment Plants.
3. Industry associations can coordinate skills, technology and market access.

Way Forward

1. Accelerate integrated manufacturing clusters. e.g: PM MITRA Parks.
2. Align skilling with industry requirements and improve worker housing and social security.
3. Promote sustainable production and export competitiveness.

India’s employment challenge requires complementing high-tech manufacturing with labour-intensive industries. Replicating competitive clusters such as Tiruppur can create productive jobs while strengthening India’s manufacturing and export base.