| Date: |
10-10-2015 |
| Subject: |
Furniture, furnishings sector to need 11.3 million workers by 2022: NSDC report |
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NEW DELHI: India's furniture and furnishings sector will need about 11.3 million skilled workers by 2022, according to the National Skill Development Corporation.
There will be higher growth in employment in 2017-22 than in 2013-17 due to changes in consumer preferences and penetration of organised furnishing services in tier-I and tier-II towns, NSDC said in a report.
The share of organised employment will increase from 5% in 2013 to 13% by 2022, an analysis of the breakup of workforce across organised and unorganised segments indicates.
"The market is moving more towards organised segment," a press release issued by NSDC said.
The demand for furniture grew 12% a year during 2007-2012 and in 2013 it increased 15%.
"The government's policy is skewed towards imports as it allows duty-free import of furniture for all the SEZs (special economic zones) and STPIs (software technology parks of India). However, for the local furniture manufacturers it has imposed a sales tax of 14.5%," said Dilip Chenoy, managing director and chief executive of NSDC. "This policy discourages local manufacturing. Revisiting this tax policy will help local business."
As per the report, the preference is switching to high-end, low-maintenance, quickly installable products with customisation options. Simple, contemporary designs are being preferred over heavy, complex traditional furniture, the release said.
The total employment in furniture manufacturing is concentrated in five states - West Bengal, Uttar Pradesh, Maharashtra, Bihar and Gujarat - as per the report. West Bengal, UP and Maharashtra together account for nearly 38% of the total workforce.
About 97% of the workers in the sector are school dropouts. Of this, 88% have education qualification of secondary education or less. In the organised furniture segment, workers account for more than half of the total workforce, while contractor workers make up nearly 25% and managers and supervisors 10%.
Source : economictimes.indiatimes.com
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