Responding to the Opposition’s criticism regarding the government’s failure to generate employment for the youth, Prime Minister Narendra Modi emphasized that over 50 crore person-years of employment were created from 2014 to 2024. The Prime Minister cited a recent SKOCH report titled ‘Employment Generative Impact of ModiNomics: The Paradigm Shifts,’ which highlighted that governance-driven initiatives led to the creation of 19.79 crore jobs, while credit-focused initiatives contributed to 31.61 crore jobs during his administration.
The PM said, “You must have read the SKOCH report that was released… They have analysed some 20 to 22 schemes of the government. They have published statistics about how many person-year-hours have been obtained. They have revealed how many hours it takes to build 4 crore houses and how many people it employs. They have published data for about 22 different parameters. They have stated that 50 crore people have accrued benefits.”
PM Modi stated that under the Mudra Yojana, bank loans amounting to Rs 25 lakh crore have been disbursed, empowering entrepreneurs to initiate their ventures and create job opportunities in the process.
“We give bank loans without any guarantee. We have disbursed loans worth Rs 23 Lakh Crore. 80% of those who have received these loans are first-timers. Start-ups used to be in the thousands and now they are in lakhs. People have been employed in this process, right?,” he quipped.
He emphasized that with the construction of thousands of kilometers of roads across the country, numerous job opportunities are created. The expansion of road and rail construction, along with increased electrification and the spread of mobile towers to remote areas, has significantly contributed to employment generation. Prime Minister Modi rebutted the claims of the Opposition party leaders, accusing them of spreading falsehoods about job scarcity in the nation.
“The SKOCH report has revealed how many hours it takes to build 4 crore houses and how many people it employs… They have stated that 50 crore people have accrued benefits.”
Prime Minister Modi highlighted that the PM SVANidhi Yojana has provided a lifeline to more than 1 crore impoverished street vendors across the nation. This scheme enables street vendors to access subsidized loans from banks, facilitating savings and business expansion opportunities for them.
“Earlier, a street hawker would sit on the footpath and now his goal is to buy a lorry. One who would owned a lorry earlier now wishes to provide home delivery services. Their aspirations are rising. This is why I believe that people receiving the benefits of government schemes will eventually result in development,” he explained.
The SKOCH Group, a think-tank based in New Delhi, recently published a report titled ‘Employment Generative Impact of ModiNomics: The Paradigm Shifts’ on May 14, 2024. This report, the fifth installment in the “Outcomes of ModiNomics 2014-2024: A Report Card” series, examines the effects of credit-led and government-led interventions during this timeframe, focusing on inclusive growth.
According to the report, ‘ModiNomics’ has significantly impacted employment generation, with an average of 5.14 crore person-years of employment created annually since 2014. Drawing from 80 case studies and data from various government schemes, the report highlights the contributions of both credit-led and government-led interventions.
Sameer Kochhar, Chairman of the SKOCH Group and author of the report, noted that credit-led interventions have contributed an average of 3.16 crore employment opportunities per year, while government-led initiatives have added 1.98 crore employment opportunities annually. The report’s findings are based on project-level analysis and field research, offering valuable insights into the employment generative impact of both structural credit and government schemes.
Furthermore, the study dispels the misconception that small amounts of credit are ineffective in generating employment, emphasizing the effectiveness of micro-loans in creating sustainable job opportunities.
