In its March update, CMIE noted that the unemployment rate in Telangana was 4.1 percent, while that in AP was 7.7 percent.India’s unemployment rate is around 7.45%
Release Date – 12:45 AM, Thu – 22 June 23
by B Yerram Raju
Over the past nine years, Telangana has emerged as India’s top investment destination for high-tech manufacturing. The state has ensured that ‘Made in Telangana’ is now a catchphrase seen and used by people across the globe. As of March 2023, official figures show that investments for the 2022-23 period soared to a staggering Rs 49,579.18 crore.
It is easy to get good employment estimates from the corporate manufacturing sector and the medium-sized business sector, as they can be verified from the CMIE database and the Employment Director-General of the Ministry of Labor. But for small and micro enterprises in the manufacturing industry, it is not so easy.
Manufacturing SMEs
Most MSEs are expected to keep the list. Once they remain on the list, they must pay Employees National Insurance monthly. At least 85% of businesses find it cost-effective to employ mostly liquid contracting vehicles. This migrant workforce has been found to be cheaper to hire and reportedly more productive than the local workforce, despite being offered rental accommodation and discounted festive holiday fares. It is here that the labor intensity of small and micro enterprises in the manufacturing industry is shrouded in mystery.
But it will be interesting to see how the country progresses in terms of employment from data on TS-iPass approvals and Udyam registrations. The problem with Udyam registration is that existing units also register, not just new businesses. National level data from the Bureau of Labor Statistics gives us a clue and it is worth comparing Telangana with the national labor force statistics and on the one hand with those of some other progressive industrial nations.
The latest periodic labor force survey confirms that manufacturing employment will increase by about 5% in 2021 and by about 8% in 2021-22. Several field studies have shown that unemployment is high during Covid-19, especially among manufacturing MSEs. Given the loss of 3 million manufacturing jobs between 2011 and 2018, the creation of 6 million jobs in the post-pandemic period in 2021-22 is remarkable.
unemployment rate
It is also important to look at the unemployment rate by state and know what is happening in Telangana. When Telangana was formed in 2014, it was notorious for using the Mahabubnagar and Palamuru districts as symbols of India’s seasonal outbound migration. Now, those two regions no longer appear on the list.
The Center for Monitoring the Indian Economy (CMIE), a private organization, estimated in its March 1, 2023 update that India’s current unemployment rate is around 7.45%. Urban India is 7.93%, while rural India is only 7.44%. State-by-state unemployment figures released by CMIE show that Telangana’s unemployment rate is 4.1%, similar to that of another progressive industrial state, Tamil Nadu, while Andhra Pradesh’s unemployment rate is 7.7%.
Telangana’s strong industrial ecosystem, especially manufacturing MSEs at the front end of the supply chain, has supportive institutions such as Startup T-Hub, Women Entrepreneur Startup We-Hub, Manufacturing Startup T-Works, Research and Innovation Center Hyderabad (RICH) and Telangana Industrial Health Clinic Ltd (TIHCL), the only institution of its kind focused on the revitalization of micro and small manufacturing, in addition to lending directly to such manufacturing enterprises and clusters. All of these institutions operate according to the principles of autonomy, accountability and transparency. Their day-to-day operations are free from state government interference. At the same time, they worked closely with the government to implement the policy at the required speed and to the satisfaction of the industrialists it attracted.
decompression business
The establishment of Telangana Industrial Health Clinic Ltd is precisely the foresight and foresight of the government in its first few years of existence, with the revitalization and restructuring of micro and small manufacturing enterprises as one of its main objectives. In this sense, it helps sustain employment by preventing viable manufacturing micro and small businesses from closing down and restoring them to health through strategic and financial support.
The agency de-stressed 612 businesses over the past two years that were deemed potentially viable by SLBC during that time. Details for the last quarter ended March 2023 showed that 7,309 businesses were under stress while only 6 businesses were resolved with a payout of Rs 3.56 lakh. The data include manufacturing and services.
The social impact, as measured by employment sustainability, involves about 4,700 people, while machines worth about Rs 1.95 crore have been restored to near full capacity (measured at an average of 6 people per enterprise and machines worth Rs 2.5 lakh).
With an advanced information technology infrastructure for start-ups, Telangana is a strong candidate for manufacturing micro and small enterprises with 12 MSME parks. Handloom and powerloom clusters and clothing, gemstones and jewellery, artisan clusters, woodworking, precision tools, auto parts, especially electric vehicles, plastics, packaging of all kinds, toys, handicrafts, etc., to have in the next two years huge potential.
Large manufacturing companies have settled in the state, offering great potential for progressive small businesses. TIHCL’s team can provide training, consultancy and consultancy services, human resources, digitization and handheld devices at an affordable cost, which can ensure the quality of delivery and timeliness of deliverables. Thus, Chief Minister K Chandrashekhar Rao delivered on a Golden Telangana with multi-sectoral excellence and a serious reduction in inequality.
