The prolonged lockdowns have forced businesses to take drastic measures, which has resulted in mass job losses and pay cuts. As per the Centre for Monitoring Indian Economy (CMIE), over 10 million people lost their jobs during the second wave of the pandemic, and every other household saw a decline in overall income across socioeconomic backgrounds.
During the pandemic's peak, unemployment touched a record 30-year high of 23.5% and is now hovering around the 8% mark. The situation is gradually getting better with vaccination rollouts and COVID-19-appropriate protocols in place. However, it will take more time for the unemployment levels to stabilise.
Employment drives growth of consumption, and consumption fuels businesses. The economic potential is interlinked, so a conscious effort is required to revive both if we are to recover from the effects of the pandemic. An initiative in the right direction is linking the Udyam, e-SHRAM, NCS, and ASEEM portals with MSMEs as part of the framework for inclusive growth under the PM Gati Shakti program.
Offering a helping hand
The National Career Service (NCS) is a division of the Ministry of Labour and Employment that undertakes an array of initiatives to connect job-seekers with employers. It provides job-seekers with:
- Training
- Career guidance
- Placement programs
MSMEs are by far the largest employers in the country, accounting for 42% of jobs. These are just the official numbers from registered MSMEs. Medium and small enterprises have the potential to generate large-scale employment that is a win-win for all.
NCS operates through an online model that has linkages with employment exchanges across all states. Given that MSMEs are mushrooming across India, NCS can identify opportunities as and when they arise anywhere across the country and act as a matchmaker for job-seekers and employers.
Opportunities through NCS can also be accessed through offline channels called Model Career Centres. There are over 1000 different touchpoints all over India where non-tech-savvy job-seekers (especially from smaller towns and villages) can look for employment. But it is not just job-seekers who can register on the NCS portal and take advantage of it, but also
- Employers
- Skill providers
- Placement organisations
- Government departments
- Counsellors
- Household
Whether the MSME is an IT company in a metro or artisan industry in rural India, the NCS makes it easy for the business to find the right talent.
This brings us to the next key collaborative aspect. NCS has various initiatives for skill training and career counselling for the youth. This includes:
- Industry-relevant skill training
- Operates the National Apprenticeship Promotion Scheme (NAPS)
- Skill development for minorities and disabled persons
- Green Skill Development Programme
NCS is helping the youth get ready and, in turn, helping MSMEs save a tremendous amount of time and money on training programmes, which could help them recover faster from the setbacks of the last two years.
The aim of the NCS is to give citizens the right tools to make an earning and minimise unemployment. Tying up with the program gives MSMEs the opportunity to add employees across industries and skillsets. It allows the youth and COVID-19-affected to be gainfully employed, earn a livelihood, and contribute to India's growing economy.
MSMEs registering under the Udyam Scheme and collaborating with NCS can also avail of benefits in the form of business loans. With HDFC Bank, registered MSMEs can get unsecured Business Loans with minimal documentation and at affordable EMIs. Whether you are looking to manage operational expenses or expand your business and hire more talent, HDFC Bank can help you secure the right business funding.
If you are a micro or small business owner seeking additional financing, HDFC Bank has numerous customised solutions to help you. You can also apply for a Working Capital Loan to get started. For further details, reach out to your Relationship Manager or visit the closest branch to know more.
Click here to apply for your loan now!
Read more about RAMP and its impact on MSME’s here.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. All loans for MSMEs, at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.