Employment potential of India's Jal Jeevan Mission

This IIM Bangalore study highlights the spillover effects of public investments in rural water supply systems in the form of employment generation.

The employment structure under Jal Jeevan Mission encompasses both direct and indirect employment during construction and O&M phases. (Image: Wallpaperflare)

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Updated on:

19 Dec 2023, 8:35 am

5 min read

The year 2019 marked a significant turning point for rural drinking water supply in India with the initiation of the Jal Jeevan Mission, aiming to provide tap water connections to every rural household. Since its inception, the mission has made substantial progress, covering two-thirds of rural households in the country and focusing on service delivery rather than just infrastructure creation.

The primary goal of the Jal Jeevan Mission is to ensure a regular supply of quality water, thereby preventing waterborne diseases, reducing the struggle to access drinking water, and enhancing the health and productivity of rural populations. Unlike conventional approaches, the mission emphasises decentralised governance and community engagement, potentially generating employment opportunities throughout its implementation.

The employment impact of public infrastructure creation, such as Jal Jeevan Mission, is multifaceted. The direct impact involves employment during the construction and operation phases. Construction involves the creation of Functional Household Tap Connections (FHTCs), water storage tanks, and treatment plants, employing individuals in laying pipes and other construction activities. Skilled workers like engineers, valve men, pump operators, and managerial staff are also essential for proper execution. The operation and maintenance (O&M) phase requires ongoing employment for tasks like regular inspection and infrastructure maintenance.

Furthermore, indirect employment is generated in the production, storage, and transportation of materials used in construction and O&M. Investment in infrastructure, according to studies, has a positive long-term effect on job creation.

The study ‘Assessment of employment generation potential of Jal Jeevan Mission’ by Gopal Naik et al. explores the types and nature of schemes under Jal Jeevan Mission, including Single Village Schemes (SVS), Multi Village Schemes (MVS), and In-Village Distribution Systems (IVDS). Each scheme type undergoes construction and O&M phases, with MVSs being centrally managed and often contracted out to private entities.

The employment structure under the Jal Jeevan Mission encompasses both direct and indirect employment during the construction and O&M phases. While construction-phase employment is one-time and influenced by factors like scheme size and topography, O&M phase employment is more likely to be permanent. Indirect employment is also substantial, involving the production, storage, and transportation of materials like pipes and valves.

So, the Jal Jeevan Mission in rural India has not only made strides in improving water supply but also holds potential for significant employment generation. The study estimates the employment levels generated under the Jal Jeevan Mission, recognising the importance of understanding the spillover effects of public water supply schemes on job creation. The employment structure is intricately linked to the types and nature of schemes implemented, creating a comprehensive framework for assessing the impact of the Jal Jeevan Mission on employment.

Specifically, the objectives are:

To estimate the total employment generated in the construction phase.
To estimate the direct and indirect employment generated in the construction phase.
To estimate the direct employment generated in the O&M phase.

Study framework

The study focuses on estimating employment potentials under the Jal Jeevan Mission in rural India, primarily employing two methods: the input-output (IO) model and the ratio method. The objective is to assess both one-time construction phase and long-term O&M phase employment generation on a national level.

In the construction phase, the Leontief input-output model is utilised to comprehensively estimate total employment, including both direct and indirect employment. For direct employment estimation, the ratio method is employed, focusing on the 'employment generated to household' ratio. Direct labour employment is calculated for each scheme in a state, and state averages are used to extrapolate results at the state and national levels. The study also employs cluster analysis to estimate employment in states without scheme-level data, grouping them based on demographic and hydrological parameters.

In the O&M phase, the study does not attempt to compute indirect employment, assuming it to be small, and also skips the calculation of induced employment due to the lack of household data.

The data used for the study is derived from various representative states across the country, making the analysis nationally representative. The employment estimation involves considering scheme characteristics, such as type (Single Village Scheme, Multi Village Scheme, In-Village Distribution System), nature (new or retrofit), and construction or O&M phase.

In addition to the IO model and ratio method, the study incorporates a linear regression model based on data from representative states to explore potential associations between scheme size or characteristics and employment generation.

The summary statistics of scheme-level data indicate a total of 917 schemes, with a majority being Single Village Schemes (58.01%), and the average water supply capacity per scheme varying across states. The study uses both secondary and primary data, collecting scheme-level information through interviews and questionnaires. Clustering of states is performed based on parameters such as population density, river length, water body area, groundwater availability, and worker population ratio.

The study employs an Input-Output (IO) model to estimate the overall employment generation potential of the Jal Jeevan Mission in its construction and operation & maintenance (O&M) phases. Key findings and conclusions are summarised below.

Construction phase

Overall employment:
The construction phase of Jal Jeevan Mission is estimated to generate 28,248,478 person-years of employment, considering both direct and indirect employment.
Direct employment:
A detailed breakdown reveals that the construction phase contributes 5,993,154 person-years of direct employment.
Indirect employment:
The remaining 22,255,324 person-years of employment are associated with the manufacturing of materials used in construction (7,734,620 person-years) and subsequent stages (14,520,704 person-years).

O&M phase

Perpetual employment:
Unlike the temporary nature of construction-phase employment, the O&M phase generates perpetual employment. A total potential employment generation of 1,325,918 person-years is estimated during the O&M phase.
Segmentation:
To differentiate the impact of the Jal Jeevan Mission, the study segregates the Full Household Tap Connection (FHTC) coverage into 'pre-Jal Jeevan Mission period' (till 2019) and ' Jal Jeevan Mission period' (2019 onwards). The study estimates 1,184,899 person-years of employment during the O&M phase under the Jal Jeevan Mission period.

Impact on GDP

As regards the impact of Jal Jeevan Mission investment on GDP, the study finds that for every rupee of investment, an additional INR 1.74 is generated in GDP. This ratio can be used to compute the annual additional GDP generated based on the investment made.

The study faces challenges due to the dynamic nature of Jal Jeevan Mission 's implementation phase. Difficulty in drawing a representative sample and unavailability of data constrain accurate estimations. The unavailability of data limits capturing the induced employment effect in indirect employment creation. Indirect employment is estimated only for the construction phase. While the study categorises employment into skilled and unskilled, the quality of work and identification of employment beneficiaries remain unassessed due to data limitations.

The study provides valuable insights into the potential employment impact of the Jal Jeevan Mission, emphasising its substantial influence on both construction and perpetual O&M phase employment. Despite certain limitations, the findings contribute to understanding the employment dynamics associated with Jal Jeevan Mission, underscoring its significance in rural India.