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Economic Survey 2022: Coal mine auction, textile PLI and marine sector to create over 1.75 million jobs

The latest EPFO data suggests significant acceleration in formalisation of the job market during 2021, with 13.95 lakh net addition to EPF subscribers in November 2021, says the survey

January 31, 2022 / 02:27 PM IST

The production-linked incentive (PLI) scheme for man-made fibre (MMF) segment and technical textiles, opening up of coal mines to private players and the growth prospects of the marine sector will create over 1.75 million jobs for the country, the Economic Survey 2021-22 released on January 31 said.

While the MMF and technical textile PLI has the potential to create at least 7.5 lakh jobs over a period of time, marine growth story underlined in the Maritime India Vision 2030 (MIV) is likely to aid up to 1 million jobs, the survey, which details the state of the economy for the fiscal 2022, said.

“MIV 2030 estimates that development of Indian ports will drive cost savings of Rs 6,000-Rs7,000 crore per annum for EXIM clients. Further, the augmented operations are estimated to create an additional approximately 700,000-10,00,000 jobs in the sector,” the survey tabled in Parliament by Finance Minister Nirmala Sitharaman said.

The Indian economy is estimated to grow by 9.2 percent in real terms in 2021-22 (as per the First Advance Estimates), after a contraction of 7.3 percent in 2020-21, the survey said.

MIV 2030 estimates the investment requirement for capacity augmentation and development of world-class infrastructure at Indian ports to be to the tune of Rs 100,000 crore to Rs 125,000 crore.

The PLI scheme for MMF segment and technical textiles, notified in September 2021 for enhancing manufacturing capabilities and exports, will focus on promotion of 40 MMF apparel and 10 technical textiles lines, and create global champions, the survey wrote.

“It is estimated that over the period of five years, the PLI Scheme for Textiles will lead to fresh investment of more than Rs 19, 000 crore, cumulative turnover of over Rs 3 lakh crore will be achieved under this scheme, and will create additional employment opportunities of more than 7.5 lakh jobs in this sector,” it added.Also read: Economic Survey 2022: Banking system past the pandemic but some lagged impact remains in the pipeline

The opening up of mining for private sector is the most ambitious coal-sector reform. This will bring efficiency and competition in coal production, attract investments and best-in class technology, and help create more jobs in the coal sector, the survey said.

So far, 28 mines have been successfully auctioned. Out of these, 27 have been auctioned to private companies. Auction process for 88 is underway.Follow our live blog for the latest on the Economic Survey 2022

EPFO subscriptions

Talking about payroll additions, the survey said the net addition in EPFO subscriptions is an indicator of the extent of formalisation of the job market, and the coverage of social security benefits to the organized, semi-organized sector workforce.

“An analysis of the latest EPFO data suggests significant acceleration in formalisation of the job market, driven by both new formal jobs and formalisation of existing jobs, during 2021, with 13.95 lakh net addition to EPF subscribers in November 2021,” the survey said.

Owing to the large impact witnessed during the nation-wide lockdown, the net addition to EPFO subscriptions declined and turned negative in April-May 2020 that implies a net exit was registered from the scheme. With the unlocking of the economy, the EPFO subscriptions bounced back swiftly

Job creation has been a matter of debate, with demand outpacing the employment generation. The coronavirus pandemic has worsened the situation in the couple of years, reports have said.

Prashant K Nanda
Prashant K Nanda is an Associate Editor at Moneycontrol .
first published: Jan 31, 2022 02:27 pm