A major contributor to employment generation

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The economic importance of tourism in the national economy can also be appreciated with reference to its contribution to employment generation. “Tourism as a source of employment”, according to Medik a leading expert, “is particularly important for areas with limited alternative sources of employment, as is often the case in non-industrial areas deficient in natural resources other than scenic attractions and a good climate. For states like Kerala ayurveda the ‘science of life’ is now emerging as a good selling proposition, in the absence of any other viable selling theme.

Millions of people throughout the world now depend directly or indirectly for their employment on tourism. According to an estimate, about 140000 people in Switzerland and about a million in the United Kingdom are directly employed by the tourism industry. Since the liberalization of the Indian economy, scores of entrepreneurs started investing in tourism infrastructure and thus newer employment opportunities were created in this sector. Scores of travel and tourism schools now churn out hundreds of qualified highly skilled professionals that are immediately hired with better pay packages by the hospitality industry.

This aspect of tourism is of high significance, particularly for states like Kerala and also for other territories in the Indian Union, where there is large-scale unemployment and under-employment and where employment opportunities are growing at a slower rate. Apart from the direct employment opportunities created in hotels, restaurants, curio shops, travel agencies and also in the transport, handloom and handicraft industry, the tourism industry also generates “Employment Multiplier Effects” by providing employment opportunities in ancillary industries such as handlooms, handicrafts, art and crafts, sanitary ware, glassware, cutlery, crockery, furnishings, designer furniture and many other areas.

The tourist boom is yet to subside in Kerala and there was a slowdown in the previous year only due to the global economic recession. Things are likely to look up within a short span of time and major developments are likely as a result of that. If the tourism sector witnesses a continuous boom, more investors are likely to make significant investments into this sector.

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Shimla, Sep 23 (IANS) The National Bank for Agriculture and Rural Development (Nabard) will promoting dairy farming in Himachal Pradesh to improve farmers’ economic conditions.
“A Rs.300-crore Doodh Ganga project will be launched in Solan district on Friday. Initially, it will cater to three districts - Shimla, Mandi and Solan,” Nabard chief general manager S.T. Raghuraman said here Wednesday.

“The project will empower women and benefit 50,000 rural households through income and employment-generation activities. It will also help the state achieve self-sufficiency in milk production,” Raghuraman told IANS.

Nabard will assist the state government in strengthening infrastructure for dairy production, processing and distribution.

Raghuraman said under the project, banks would provide soft loans to members of self-help groups and individuals.

“The main emphasis of the project will be on strengthening basic infrastructure like purchase of milking machines, cooling units and setting up dairy product transportation facilities,” Raghuraman said.

Chief Minister Prem Kumar Dhumal, who will launch the project at Paplota village in Solan district, told IANS: “This will definitely usher in a White Revolution in the state and transform the rural economy.”

Nabard is already promoting farming inside polyhouses — greenhouses constructed with bamboo strips or iron pipes and covered with ultraviolet plastic sheets — to improve the earning potential of farmers in the state.

For this, it has sanctioned a loan of Rs.155 crore to the hill state to set up 30,000 polyhouses to promote off-season farming, particularly in the lower and mid-hills.

The economy of the hill state is highly dependent on agriculture, apart from hydroelectric power and tourism.
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A land of culture and traditions where 'Atithi Devo Bhava' is the time honoured custom - India has always been a preferred choice of tourists worldwide. This has made the travel and tourism industry in India vibrant and substantial. Indian travel and tourism sector is looked up as a major contributor of foreign exchange to the Indian economy. Swaagat(welcome), Sahyog(cooperation), Soochanaa (information), Sanrachanaa(collaboration), Suvidha (convenience), Safaai(cleanliness) and Surakshaa (security) are some of the core standards of the Indian tourism industry. Explore more of India and its cultural diversities, tourist destinations, specialities, colours and climate.
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India has always been a preferred choice of tourists worldwide. This has made the travel and tourism industry in India vibrant and substantial. Indian travel and tourism sector is looked up as a major contributor of foreign exchange to the Indian economy.
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In a developing country like India the small scale sector is an important hub of economic activity. The following are the main reasons for the promotion of small scale industrial units.

1. It has proved to be a powerful instrument for a rapid and decentralized growth of a developing economy like India with a large army of unemployed labour and scarcity of capital resources.
2. The small scale sector is considered as an important means for checking concentration of economic power in a few hands and bringing about economic dispersal and more equitable distribution of national income.
3. This sector is also considered very effective in promoting the industrial development of backward area.
4. It also helps in checking the unplanned migration from rural and semi-rural areas to the urban areas.
5. It greatly encourages the development of new entrepreneurial initiative and thereby injects competitiveness in our industrial economy.
6. Small scale sector also assumes great significance from India`s stand point since this sector accounts for more than 30 percent of India`s total exports.

In the words of V.V.Giri: "Small industries play an important role in the economic growth of our country. They provide immense opportunities not only for employment but also for exploitation of indigenous resources".

The small scale sector occupies a pivotal position in the country`s process of development. The small scale sector in India embraces various types of units, ranging from ancient household industries to modern small scale units.

The table below represents several parameters regarding the performance of the small scale sector in India from 1973-74 to 2001-02. This sector has a sizeable weight in India`s index of production, employment generation and foreign exchange earnings. Hence, it is imperative to analyse the growth of this sector under its major dimensions such as production, employment, number of units and export.

The small scale sector now produces more than 7500 products. It has emerged as a major supplier of mass consumption items like leather and leather goods, sheet metal goods, bicycle parts, plastic and rubber goods, stationery, soap, detergent, domestic utensils, tooth paste and tooth powder, preserved fruits and vegetables, wooden and steel furniture, flashlight torches, boot polish, paints and varnishes. Among the sophisticated items, mention may be made of TV sets, electronic control system transistor radios, hearing aids, intercom-sets, electric carbon-register, electronic medical equipment, electronic teaching aids, digital measuring equipment, air conditioning equipment etc.

The level of output produced by the small scale industrial units went up from Rs.7200 crores in 1973-74 to Rs.6,90,522 crores. The increase in output by nearly 95 times over a period of 29 years is commendable. However, compound annual growth rate of production after liberalization(14.47 percent) is lower than that before liberalization (19.80 percent). Moreover the compound annual growth rate of production after liberalization (1991-92 to 2001-02) is lower than that of the period from 1973-74 to 2001-02 (Table 3).
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It has emerged as a major supplier of mass consumption items like leather and leather goods, sheet metal goods, bicycle parts, plastic and rubber goods, stationery, soap, detergent, domestic utensils, tooth paste and tooth powder, preserved fruits and vegetables, wooden and steel furniture, flashlight torches, boot polish, paints and varnishes. Among the sophisticated items, mention may be made of TV sets, electronic control system transistor radios

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Ranchi, March 16 (IANS) Jharkhand Deputy Chief Minister Raghubar Das Tuesday warned of action against banks not giving loans to unemployed youth under the Prime Minister’s Employment Generation Programme (PMEGP).
“It is well known that the banks do not disburse money to unemployed youth under the PMEGP. Suitable action will be taken if the banks do not improve the disbursing of loan system to unemployed youth,” Das said while replying to a question in the state assembly.

Das said the state government officials have held meetings with State Bank of India (SBI) officials twice this year and asked them to improve the loan disbursing system.

Under the PMEGP, unemployed youth are given loans up to Rs.one lakh for self-employment schemes.

The issue was raised by Jharkhand Vikas Morcha-Prajanatantrik (JVM-P) member Pradeep Yadav, who said the targets set under various schemes to provide loans to unemployed youth are not met as banks are “indifferent” to disbursing loans under the PMEGP.

Assembly Speaker C.P. Singh asked Das to take up the issue with the union finance minister to improve the loan disbursals.

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