If there is net outflow of money from economy, then the country will get poorer and dwindle employment.
However, if there is net more exports then imports, at all times, then seeking to become self-sufficient economy is good enough.
Suppose you can produce everything you need for your country within the country, then one can support all the requirements/material needs for the entire population of the country in the country itself and every one can receive these in sufficient quantities: whether they be food or consumer goods or consumer electronics or housing etc.. Then, all youths in the country may not be producing or manufacturing goods, they may be involved in arts, or sciences or maths or creating other forms of tertiary values.
So the most important things besides augmenting exports is to seek to become self-sufficient in all regards, in this order: food, infrastructure, consumer goods, consumer electronics, education, housing etc.. then a majority of population can spend time devising space shuttles and time travel ships and meditating! :-)
So seek to become self-sufficient nation in all, the above mentioned, basic requirements and then you don't sway much if the world's economy booms or glooms!
Re: Seek to become self-sufficient economy by itself
by Dipak Chowdhury on Jun 19, 2016 09:22 PM
Nice and very thought provoking article indeed. However, sometime, some other principle also works. Suppose, an article named ABC costs Rs.100 in India to produce and consumers pay Rs.110 to consume it. If the ABC is produced at much less cost in XYZ country, suppose at Rs.25 and after it's import in India, adding all costs (Customs duty, transporation and traders profit)Indian consumer pays Rs.50 for the same item, there would be little sense to produce ABC in India. This very principle defines the necessity of export and import and defies the Law of Self-reliance.
Re: Seek to become self-sufficient economy by itself
by shailesh on May 30, 2016 11:15 AM
for example, if indians are spending 1,00,000 crores on buying smart phones, every year, then indian corporates can be savvy to have complete manufacturing units for building smart phones (all fabrication to assembly) inside the country.
Why not? Develop this industry, give employment to local labour and keep the money flowing inside the economy.
In any country which is industrialising, more jobs are likely to be created which is commensurate Diploma level courses. This it is more important to increase the standards of our Diploma programmes, than increasing BE seats (whether it is in Govt or Private colleges it does not matter). We did exactly this wrong thing: the result is: more BEs with little practical knowledge and Diploma holders with poor soft skills. Indirectly it is a consequence of McCaulayism(emphasis on producing clerks-now BE qualified!!and BA/B.Com qualified, 30 years back)
Simple example there are many jobs as drivers for UBER and OLA cabs but it requires hard work and the youth to day wants easy IT jobs in airconditioned offices and guaranteed salary at the end of the month. The state governments are also reluctant to release licences and permits for Autos in Tier 2 and 3 cities which would otherwise provide jobs for lakhs of unemployed youth and also auto industry would in turn provide jobs in factories and garages. Government requires to regularize the coaching classes and permit the students to appear 10th and 12th std from the coaching classes and these classes too will provide lakhs of teaching jobs.
We Indians have very much got used to expecting the government and Industries to provide jobs and salaries with doing hard work. It is time that government permits more and more of independent employment to the youth who will work and earn for themselves.
The worst problem; everyone in India rush for a course which has max job/earning chance. At present, even Ph.D in Sanskrit or Social Work would like to go for IT job because there are no jobs or no pay in their own specialisation. In last 25 yrs, every Engineer irrespective of specialisation, went for IT jobs, balance for Govt desk jobs (no skill is required after joining) with the result there is no one left for Industry/manufacturing and/or Teaching jobs. If any they were totally substandard. The survey said only 10% of BE Graduates have employable skills. What else can you expect? It is only in these news items, we are talking about demographic catastrophe but does any of our policy makers know anything about it? The answer is NO. The job of our Netas is over after they are elected & Babus after they are selected. They do not even know that our developmental pattern is itself defective & creates more problems than solving any. As Bill Gates said "we need a revolutionary change to make an impact". One British MP commented that "it is a surprise that India is going on, despite Government". Our Govt will make policies which covers their interest, also protect their seat. Unless we change our attitude to earn for next 20 generations, there cant be any change. Above all, they have to accept suggestions from common man than simply raising slogans like "make in India" They must know what it takes to make in India or take it from others.
Re: Unemployment
by Ashwin on May 29, 2016 01:19 PM
There is one more fall out of this pattern of chasing IT jobs only. There are no qualified teachers in Engineering Colleges and in undivided AP alone, almost 300 Colleges have shut shop OR about to shut down. They started Engineering Colleges only to collect fees & donations from IT job aspiring lot. Half of them drop out, some of them commit suicides (who are from poor families) who can neither complete BE nor get IT Jobs and also unable to digest, becoming Clerks or Primary School students. There are Engineering Colleges by Angutha Chap Farmers & Land lords who had Land & money. On top of this, ever cooperating AICTE was readily available to sell permission to start Engineering Colleges, even if they showed infrastructure only in photos. What standard can we expect from such Colleges? We also know that several MBA Colleges also have shut shop for similar reasons. Recent article on NEET in Business India mentioned that a person dismissed on corruption charges in MCI has been again posted in the same position. But our Policy makers & Ministers want to look other side. Can anyone answer why Supreme Court has to intervene in Academic matters (than disposing off cases which are likely to take 69 yrs) It is only because Education Ministry or MCI is not doing their job.
There is one more reasons for increasing unemployed workforce . Industries are continuously focussing on cost cutting in order to improve profits and share prices . It is seen that cost cutting starts from manpower . Except IT , one would find reduction in manpower for each unit produced . India , with large low skilled manpower base , is sitting on Demographic Bomb
