Monday, December 22, 2008

Jobs in Automobile

The contribution of the Indian automobile sector in the Gross Domestic Product of the country has increased over the years. Its growth has led to rise in automobile jobs since this industry is labor intensive in nature. It is expected that over the coming ten years India will be a major player in the international automobile market. India ranks high both in the passenger car as well as the two-wheeler segment. The availability of cheap, yet skilled labor is the primary reason behind the development of the Indian automobile sector.Jobs in automobile Industry.

There are several factors that have contributed to the development of passenger car markets in India. One is the lowering of the entry-level prices and the second is the rise in the disposable income. The small car segment is not so competitive as the passenger car segment but is likely to expand its size by 2011.

As of now the automobile sector in India employs about 10 million people who work in the manufacture of cars, motor cycles, tractors or trucks.

Jobs in automobile Industry According to the Automobile Mission Plan, the projected employment generation from the automobile sector in India is about 25 million by 2016. In the words of Jagadish Khattar (Managing director, Maruti Udyog), 'for every direct employment in this sector, generates indirect employment of another seven'.
From the above figure we find the composition of the workers in the automobile industry is biased in favor of skilled workers and management employees. The demand for unskilled workers is minimum. This is evident from the composition of workers in Ford. Almost half the workers in this automobile company are blue collared.

The automobile industry is acting as an engine for economic growth in India. Growth in the automobile sector implies employment generation in IT and oil companies. It is expected that the contribution to GDP of the Indian automobile sector will double over a decade’s time.

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