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Labour shortage in manufacturing units in India: Causes and solutions
Road and infrastructure development in New Delhi has created a problem of labour shortage for manufacturing entrepreneurs. Small industries need to increase wages and provide facilities, which will increase costs. Many workers are moving to sectors like e-commerce and quick commerce for better wages and facilities, while infrastructure projects are also offering higher wages.
With the ever-increasing growth of the service sector, as well as other infrastructure like roads, manufacturing business owners are suffering from a gigantic issue of labour these days. These manufacturers primarily produce unbranded garments, shoes, fashion accessories, and small items utilized in daily life.
Small and micro-level entrepreneurs who undertake job work for large companies are also suffering from the issue of labour. Specialists indicate that to eradicate the issue of workers, they will either have to enhance the salary of workers or provide them with PF and medical-related facilities or they will have to automate the production. Both of the options will make their cost higher.
Currently, there are hundreds of such small plants that are performing manufacturing activities in numerous states, such as Delhi, Punjab, Haryana, Rajasthan, Uttar Pradesh, where workers do not get PF and health-related facilities. Deepak Arora, who makes nail polish, lipstick, bindi, and other beauty products in the Narela area of Delhi, said that 10 years ago, the workers working in his factory always used to recommend someone or the other for employment.
Now the situation is such that we have to recommend that the workers to bring more workers. Boards demanding workers can be found hanging outside small factories in all industrial areas of Delhi from Okhla to Narela, Bawana. Anil Bhardwaj, general secretary of Federation of Indian Micro, Small and Medium Enterprises, says that such non-branded manufacturing units will now have to increase their cost to get workers, otherwise they may be out of the market in future.
