CICU expresses concern over rise in unemployment in the country

Ludhiana, January 12, 2015: Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana has expressed its concern over the rise in the rate of unemployment in the Country.  According to the Report released by Labour Bureau, Government of India, the rate of unemployment has risen to 4.9% in 2013-14 on account of joblessness in rural areas; in comparison to the rate of 4.7% in 2012-13.

While expressing their concern the CICU President and General Secretary said that India is a country of huge population, and if, the increase in unemployment is not controlled, it can lead to unrest amongst the youths and creation of imbalance in socio and economic system of the country.  They requested the Central and State Governments to take immediate and appropriate measures which could lead to the growth of Industries for the generation of maximum jobs to provide employment to the maximum people of the country.  

They further said that from the perusal of the prevailing industrial scenario and the expected outcome from the ongoing setbacks and jerks to the industrial sector, it seems that Prime Minister’s dream project namely “Make-in-India” seems to showing the reverse side.  It is feared that the wounds of the Indian Industry have still to wait for remedial measures from Union Government in context of the rebates to the Foreign Investors in the rate of interest on bank loans, schemes and facilities being offered for setting up Industrial Units in India; in comparison to the Indian Investors; seems to be turning Make-In-India dream project - as a white elephant for Indian Investors.  High interest rate on Machinery and Equipments for Indian Investors, for setting up of a new Unit; is another hurdle in the growth of Industries in India.  There is huge rate of interest (from 11% to 14%) per annum on Machinery and Equipments for the Indian Industrialists, whereas; if a Foreign Company sets up a Unit in India, it has to pay less rate of interest.  For instance; if a Japan Company sets up a Unit in India, it will get capital @ 3% per annum.  Also the scheme like CLSS and Tub also need to be strengthened.  So, CICU suggests that the steps should be taken to lower the rate of interest on Capital Goods for local Industrialist, as well.

They added the Government of India is signing Free Trade Agreements (FTAs) with neighboring countries.  These FTAs would lead to increase in import from the adjoining countries and decrease in production in Indian Industries.  CICU, therefore, requests the Government to deeply study FTA rules and regulations before signing as these FTAs would cause to increase the unemployment in the country, as setting of Industrial Units in India, is a quite cumbersome process; whereas in the countries like Thailand, Indonesia & China, it is plug & play concept and the procedure for setting up of Industry there, is easily available for the local Investors.  CICU, hence, requests the Union as well State Governments to look into this matter, seriously.

They further said that MSMEs need to be strengthened as the ratio of Investment v/s employment in the MSME, is high so the Government should give maximum focus for the development of MSMEs.  There are number of schemes which have been made available through the Ministry of Micro, Small & Medium Enterprises, Government of India, but the Industries are not getting the final benefits of these schemes due to procedural difficulties.  CICU, thus, requests the Ministry of Micro, Small & Medium Enterprises to simplify the procedure for availing of these schemes.

Also they requested to set up a low cost Freight Corridor which could lead to the growth of MSME Sector Freight is one of the factor which contributes to un-competitiveness of the Industries.

CICU also requests the Union & Statement Government to revise the Labour Laws as well, to enable the Employers to utilize their maximum time for the growth and development of Industry instead of wasting the time, energy and money on petty issues.

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