Around 5.14 crore person-years of employment were generated on an annual basis during the ten years of the Modi government, a report by a leading economic think tank SKOCH Group revealed on Monday (13th May). As per the study, 19.79 crore employment were generated by governance-led interventions while 31.61 crore employment opportunities were contributed by credit-led interventions between 2014 and 2024.
Notably, a person-year is a unit of measurement for the amount of work done by an individual throughout the entire year expressed in hours. The report by the SKOCH Group is titled, Outcomes of Modinomics 2014-24 (A Report Card by SKOCH Group).
It analysed the Employment Generative Impact of ModiNomics: The Paradigm Shifts and it is based on 80 case studies. It covered borrowers who took multiple loans and data on various government schemes.
The group’s press release stated, “Over a period between 2014-24, a total of 51.40 crore employment has been generated. Out of which 19.79 crore employment has been generated by governance-led interventions. The rest, 31.61 crore, has been contributed by credit-led interventions.”
It added that the current study also finds that micro-loans are being used to generate employment that is steady and stable. The release added that the current study takes into account 12 central schemes, including MGNREGS, PMGSY, PMAY-G, PMAY-U, DAY-NULM, RSETI, ABRY, PMEGP, SBM-G, PLI’s, and PM SVANidhi.
SKOCH Group Chairman and author of the report, Sameer Kochhar said, “We have documented 80 case studies from our field visits covering borrowers who have taken multiple loans and the average direct employment per loan amount stands at 6.6 jobs.”
As per the press release, the recent report is a part of SKOCH Group’s ongoing study on employment generation which is titled, ‘A Hundred Voices, A Billion Dreams’.
The studies have shown that the Credit Gap has fallen 12.1% during the past nine years. It has also shown a positive correlation between a reduction in the Credit Gap, a reduction in multidimensional poverty, and an increase in NSDP.
According to the release, the SKOCH reports are based on project-level findings and have a high degree of acceptance. This report is important as it studied the employment-generative impact of structural credit from formal sources and fractional employment and its treatment, the press release added.
The extensive study also revealed that the slew of measures by the Modi government during its ten years of governance not only reduced multidimensional poverty but also led to a surge in domestic production.
It is pertinent to note that SKOCH Group is one of the leading think tanks dealing with socio-economic issues, focusing on inclusive growth since 1997. Its report has consistently received high-level credence. The report has been released by economist Sameer Kochhar, who has authored several books. He is the chairman of this organisation and a historian.
