While on one hand, the world is aggressively working to develop new techniques of artificial intelligence, the central think tank NITI Aayog has proposed a way to make sure that these developments do not pose a threat to jobs creation and job security.
While on one hand, the world is aggressively working to develop new techniques of artificial intelligence, the central think tank NITI Aayog has proposed a way to make sure that these developments do not pose a threat to jobs creation and job security. According to a report in Mint, NITI Aayog has proposed that the government should set up a labour utilization fund that will make the country’s workforce more skilled and cost-competitive, encouraging businesses to hire more at a time when automation and the use of artificial intelligence are making low-skill labour redundant.
Ever since Kumar took over from Arvind Panagariya, the think tank has been working on a blueprint for the government to create jobs. He said that the government is currently encouraging automation in the textile industry under a technology upgradation fund (TUF) to make it capable of competing with large production houses in countries such as China.
Rajiv Kumar believes that this step will not only help in skilling workers but will also provide them with social security, making the workforce more cost-competitive for the industry to employ. “Just like that, we should have a labour utilization fund. It doesn’t have to pay salaries but can be used for better training, for paying provident fund contribution and for covering the health costs. In advanced economies, all these things are provided by the public sector,” he was quoted saying.
He said that the aim behind NITI Aayog’s policies is to maximize employment generation as once you do that, everything will fall into place. He added that labour-intensive sectors such as housing, construction, exports, garments, tourism, education and health should be in focus.
The economist also suggested that the impediments to growth in these sectors should be studied in detail to figure out where the shoe pinches.