Even as the Indian government looks to create new jobs in the India by empowering the informal economy, Neelkanth Mishra of Credit Suisse says that there are huge job creation opportunities in the electrical appliances sector. In an interview to Shaji Vikraman of The Indian Express, Neelkanth Mishra explained India’s job creation in footwear and textiles industry using the analogy of Salman Khan’s advertisements. “Look at the job creation in footwear and textiles. It’s all pre-fabricated now. I’m sure Salman Khan doesn’t know this but you go to any small town, you’ll see posters of him advertising some little-known brand! I’m sure the same will happen with electrical appliances,” he told the newspaper.
According to him, the small appliances will be huge job creators, buoyed by the government’s thrust on electrification. “I think small appliances too will grow, particularly as electrification increases. Until 2011, around one-third of our households didn’t have wires going into their houses. Now, most do. Many states have seen a dramatic improvement in electrification. My home state of Bihar, till 2011, had only 16% houses with wiring. Now, that’s 60%. So earlier, there was no need to buy a mixer-grinder because bijli hi nahin hai, toh what will you do with that? Now, you have electricity. Now, you will need that mixer-grinder. Who’s going to make that? Not just the Chinese,” points out the expert.
Apart from electrical appliances, Neelkanth Mishra sees great potential in the food processing and agriculture space in India. Pointing out the strengths of India in agriculture, he said, “We have many food surpluses. We are also exceptionally well-endowed with sunlight, fertile soil, rain. And cheap labour — we should be killing it in agriculture! Agriculture itself can create jobs, as can food processing. And these don’t need migration.”
In the same interview, Neelkanth Mishra said that through the PSU bank reform, the government has checked the vicious cycle of less capital, leading to less lending and reduced operating profitability. “This one-time capitalisation was needed. This vicious cycle has been stemmed. This should be accompanied by banking reforms, so the problem doesn’t recur,” he noted.