In short supply

Unorganised sector

The unorganised sector consists of all unincorporated private enterprises owned by individuals or households engaged in the sale and production of goods and services operated on a proprietary or partnership basis and with less than ten total workers. The total employment in the unorganised sector is expected to be about 420 million (92%) out of a total workforce of 450 million in 2008. The extent of informal employment is estimated to be at about 92%-93% between 2008 and 2012. The nature of skill requirements and gaps in informal unorganised employment spans across sectors such as construction, food processing, textiles, manufacturing, repair and servicing, etc. The informal nature of employment also exists in informal sectors such as driving/transportation, domestic help, handlooms, handicrafts, security guards, etc. The incremental employment till 2022 in the informal sectors, limited to domestic help, handloom and handicrafts, beauticians, facility management staff, security guards, alone amounts to over 41 million persons.

Transportation and logistics

The global annual logistics spend is valued at about $3.5 trillion. The annual logistics cost in India is valued at Rs 67.5 crore and it is growing at 8-10% annually. Logistics cost by value accounts for around 13% of the GDP of India?this is much higher than that in the US (9%), Europe (10%) and Japan (11%), but lower than that in countries such as China (18%) and Thailand (16%). In particular, the percentage-wise share of transport cost by value of GDP has been steadily increasing. The transportation, logistics, warehousing and packaging sector in India is dominated by the unorganised segment (small truck owning companies linked to intermediate brokers or transport companies, small warehouse operators, custom brokers, freight forwarders, etc). The organised segment accounts for less than 10% of the total logistics market in India. The sector currently employs around 7.3 million persons. Of these, the maximum proportion is employed in the road transport segment and personnel employed in the road transport and rail transport segments constitute over 90% of the total employment in this sector. Established logistics hubs in India include Mumbai, Kolkata and Chennai, while the emerging hubs are Gurgaon, Vizag, Nagpur and Indore. Emerging hubs such as Jamshedpur, Alwar, Ahmedabad, Bangalore and Ambala, and nascent hubs such as Kochi will further help fuel the growth of the sector.

Construction

The size of the construction industry was around Rs 2.1 lakh crore in 2008. The construction sector in India is the second largest economic activity after agriculture and provides employment to about 33 million people. India?s construction industry has grown at a compounded annual growth rate (CAGR) of about 11.1% over the last eight years on the back of massive infrastructure investment and rapid rise in housing demand. Foreign direct investment (FDI) inflow into the sector during 2007-08 is estimated to be around Rs 2.4 crore. Spending on infrastructure sectors such as ports, power plants and roads is projected at more than Rs 2.5 lakh crore annually for the next six years, and will require 92 million man years of labour.

The sector is further classified into two sub-segments?real estate and infrastructure. Based on the growth expected in the infrastructure and real estate sectors, it is expected that about 83 million people would be employed in the construction sector by 2022. The incremental human resource requirement between 2008 and 2022 is expected to be about 47 million.

While a large proportion of the workforce falls in the lower portion of the pyramid, there would be skill building required at a workplace and construction-site level. This being said, the skill level would be the area where substantial skill building efforts would be needed.

Auto & auto components sector

The Indian automotive industry contributes nearly 5% to the country?s GDP and about 17-18% to the kitty of indirect taxes to the government. It is estimated that the sector provides direct and indirect employment to over 13 million people. The Indian auto industry today is being seen as one of the most competitive amongst the automotive industries of the world. The growth has largely come in the past seven-eight years where the industry has grown at a CAGR of over 14%. The size of the automotive sector in 2008-09 was estimated to be around Rs 19.1 crore, of which the automobile segment was estimated to be Rs 12.3 crore (about 64%) while the auto components segment contributed to around Rs 6.8 crore (about 36%). The automotive industry has also been recognised as an industry with a very high potential to increase employment and additional employment of 25 million people is envisaged by 2016. It is also estimated that by 2022, the automotive industry will employ an incremental 35 million people.