India has no job problems but wage problem: Pai

Former Infosys CFO and multi-sector investor T V Mohandas Pai stated that India does not face a job problem, but one of wages, as a lot of low paid jobs being created do not find favour with degree holders.

Saying that India has regional and geographical problems, Pai said that India is not producing good jobs, but creating a lot of Rs. 10,000-15,000 low paid jobs which are not fancied by degree holders.

Pai suggested that India adopt the Chinese model of opening up labour-intensive industries and building infrastructure near coasts, besides investing heavily in hitech R & D to meet the aspirations of job-seekers. He also said that it should be noticed that what China has done. China first opened up the labour intensive industry, invited the rest of the world to come and use its labour and started an export industry.

Pai said, “We have not incentivized labour intensive industries. We don’t have proper policies so we cannot use our surplus labour.”

He further stated that the data on unemployment put out by the Centre for Monitoring Indian Economy (CMIE) that 11 million jobs were lost in 2018 was erroneous adding that there are flaws in the survey methodology for unemployment for the age group of 15-29 years.

He further said that the best data on jobs was the EPFO payroll data, which says 60 to 70 lakh people get formal jobs every year. Even vehicle sales throw light on the job situation in India, Pai said, adding that every year 30 to 35 lakh people get jobs after discounting vehicle purchases.

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