Despite the rising growth in numbers and data as seen in every quarter, employment rate is still consistently low in the country. India requires around 10-12 million jobs every year and is failing to reach anywhere close to achieving the target. With the upcoming State elections and the general elections next year, the government is facing heat due to unemployment and growing anger within youth and middleclass. The MSME sector is also in trouble with the surging NPA that has doubled within few years. The main reason goes to the high, unreasonable interest rates.
The Government has even asked the Labor Ministry to not upload any new data on unemployment as it may cause big chaos in the country given the election time. Farmers on the other side are too happy with the government as well. The gross NPA for MSME which was INR 63, 035 crores in 2015 is now INR 98, 500 crores in 2018.
MSME in Crisis
Interest rates that were increased by RBI to reduce inflation back fired and impacted heavily on MSMEs as the loan they brought couldn’t be returned. This resulted in huge NPA that got accumulated within 3 years. It should be remembered that 90% of the labor force comes from the MSMEs which certainly means that derailed MSME industry will pile up unemployment. The government is silent on the employment numbers and has nothing to show as data from the International Labor Organization. This suggests that in the coming years India will face the wrath of employment.
The Center for Monitoring Indian Economy suggests that employment has fallen and the current unemployment rate for FY2018 is 4.7%. The ILO data shows that in the year 2017, 18.3 million people were unemployed while in FY 2018, 18.6 million people are unemployed and in FY 2019, 18.9 million people will be unemployed.
Solar panels on rooftops
In the early 2000, Germany adopted installation of solar panels on the rooftops to tackle unemployment. This not only generated energy but also filled the unemployment created. India could well follow the same model given it has ample amount of sunlight available through most of the country. It suggests that nearly 80 million jobs will be created by the rooftop solar power which would solve the unemployment problem. What is interesting here is that 20% of jobs will be created within 6 months of the implementation. What the government has to do is to subsidize the solar industry and make a proper plan to implement it.
It is obvious that it is not possible for individuals to install manage and repair solar panels on their own, and thus a workforce that is capable of doing such things will be vital. This will in return create ample job opportunities. India, especially the rural part is suffering from the problem of power shortage. This method would not only solve the unemployment problem but will give clean energy reducing the dependence of India on oil. What is required is to decentralize the power system and give enough authority to the private and local individuals. It will also impact the power grid system owned by the state which is already in losses.
Independent solar grid
An independent solar grid system managed at private level with government contribution will be a source of employment and power to people who have been suffering from both. This solar power can sold at good price to commercial sectors and the resulting profit can be shared between the rooftop owner and the middleman.