GDP growth of 8 per cent needs robust infrastructure, skilled manpower and 24X7 power

The growth of the Indian economy is definite but how far it can be sustained will be determined by definitive steps to overcome the key challenges and make best of the inherent strengths. The dream of GDP growth above 8 per cent can happen only on the back of robust infrastructure, skilled manpower and 24X7 access to uninterrupted power.

India possesses a significant demographic dividend due to its large and growing population in the age group of 15 to 50. And when Prime Minister Narendra Modi said in Canada: "Eighty crore youth population, 80 crore dreams, 160 crore strong hands. What can we not achieve?", he accurately picked up the strength that no other economy has - a young population with a 'can do' attitude.

Currently, the training infrastructure or the capacity is way below the required levels and, most importantly, the talent base is not industry-ready. Hence, vocational training capacity has to vastly increase from 3.1 million seats to meet the diverse skill requirements of the population.

Imagine, almost 90 per cent of the 450 million jobs in India demand vocational skills. This in itself can form a platform to propel the economy. From creating infrastructure to identifying skills and providing training to realise the dream of 'Skilling India', the opportunity is here. In view of the above, the government's plan of training 500 million individuals by 2022, which translates to training 42 million a year, is very timely.

Burgeoning unemployment is a challenge for a country with a billion-plus population, especially if 12.8 million new labourers enter the market every year. There is indeed concern that recent growth has not created jobs as expected, particularly in the formal sector and manufacturing. In addition to concerns of exclusion and social stability, productivity catch-up may also be affected.

The challenge of meeting the 12th Five-Year Plan's target of 50 million new work opportunities in the non-farming sector has been further exacerbated by the manufacturing slow-down. Going by the track record, this calls for a public-private partnership (PPP) model, which has worked wonders in the Indian power sector. Almost 70 per cent of the incremental power capacity added after 2005 is credited to private players.

If lack of adequate investment cycle has been a bane for growth, then unavailability of skilled manpower, low standards of technology and poor infrastructure have also played a critical role in weighing it down heavily. Hence, it is important to address infrastructure bottlenecks and revitalise the investment climate to boost 'Make in India', which will bring a focus on generating employment in the country.

The complexities in Indian labour laws have played a role in lower employment growth, resulting in sluggish economic development. With more than 50 Parliament acts and regulations governing employers in terms of their industry relations practice, it is not a surprise that a lesser increase in per capita income is being witnessed in the country.

To achieve the 8.2 per cent GDP growth by 2016, as per the Asian Development Bank's report, India has to empower its young population, skill them to overcome the blocks in the system. The number is envious as China is likely to experience a 6.3 per cent growth according to the same report.

The Modi government's play of 'Make in India', India as ease-of-doing-business destination or the Smart Cities are heavily dependent on Skilled India.

The author is Chairman, Hindustan Powerprojects