Over 60% of employers in India expect PLI scheme to boost hiring in next two years, shows TeamLease survey

Over 60% of employers in India expect PLI scheme to boost hiring in next two years, shows TeamLease survey

More than 60% of employers in India Inc are planning to hire more due to the government’s Production Linked Incentive (PLI) scheme – which aims at boosting manufacturing – over the next couple of years, according to a report on “PLI Impact on Job Creation” from leading staffing company Teamlease.

The sectors that will see significant job creation and have positive hiring sentiment include pharmaceutical (68%), white goods (67%) and textile products (62%). The PLI scheme will also boost job creation in the micro, small and medium enterprises (MSME) sector.

“The PLI scheme will not only boost investments and growth across industries but is also expected to lead a significant surge in employment opportunities,” said Sumit Sarabhai, Business Head – Emerging Vertical, TeamLease Services.

The report is created on the basis of the employer’s reaction toward job creation based on the incentives mentioned by the government in the PLI scheme and their projection towards hiring in the next two years. It has surveyed 344 mid to senior-level, general managers / talent acquisition managers across 14 cities and eight industries.

Small and medium-sized organisations (70% each) will lead from the forefront in hiring activities, followed by large organisations (22%).

The overall intent to hire across small and medium sized organisations is highest in Indore (86%), Chennai (73%) and Pune and Gurgaon (65% each).

The report finds employers from cities such as Indore, Pune and Ahmedabad anticipate an over 20% incremental growth in employment in the next two years. The PLI scheme is expected to bring in more women into the workforce. According to the report, while cities like Gurgaon and Indore (71% each), Kolkata (69%), Delhi (67%) and Nagpur (67%) still prefer hiring male candidates; cities like Chandigarh (31%), and Chennai (30%) are more inclined towards hiring female employees, especially across industries like textiles, pharmaceuticals, and large-scale electronics manufacturing.

“The pharmaceutical industry is also inclined towards hiring from the LGBTQ community. However, a few industries such as textile products (37%), pharmaceuticals (36%), and large scale electronics manufacturing (30%) believe that there will be a preference for hiring female employees as a part of the PLI scheme,” said Sarabhai.

“For the MSME sector, which contributed to about 30% of our GDP, the PLI scheme is a positive foot forward as it will boost investment in MSMEs especially in textile Products, specialty steel and automobile and auto components industries”, he said.

In terms of the job profiles, the large scale electronics manufacturing industry (70%) employers hiring blue collar workers and (60%) employers hiring for temporary staffing is foreseeing up to 10% net incremental growth.

On the other hand, both large scale electronics manufacturing (60%) industry and textile industry (66%) is foreseeing up to 10% net incremental growth for female workers. Besides hiring, employers also anticipate that PLI-related benefits will boost employee productivity and contribute to business growth.

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Author: Shirley