India fastest growing but must create 8.1 mn jobs annually: WB

April 17, 2018 BUSINESS 25 Views

India needs to create 8.1 million jobs a year to maintain its employment rate, said a World Bank report which projected the country’s growth to accelerate to 7.3 per cent in the current financial year.
It has projected the growth rate to increase further to 7.5 per cent in the following two years.
The report also said that India has recovered from the withdrawal of large denomination bank notes in November 2016 and Goods and Services Tax (GST), rolled out on July 1, 2017.
In its twice-a-year South Asia Economic Focus (SAEF) titled ‘Jobless Growth?’, the bank also said that the area has regained its lead as the fastest growing region in the world, supported by a recovery in India.
“Growth is expected to accelerate from 6.7 in 2017 to 7.3 percent in 2018 and to subsequently stabilise supported by a sustained recovery in private investment and private consumption,” it said, referring to India.
The report projected the country’s growth to further accelerate to 7.5 per cent in 2019-20 and 2020-21 and suggested that New Delhi should strive to accelerate investments and exports to take advantage of the recovery in global growth.
“Every month, the working age increases by 1.3 million people and India must create 8.1 million jobs a year to maintain its employment rate, which has been declining based on employment data analyzed from 2005 to 2015, largely due to women leaving the job market,” it said.
SAEF finds that the South Asia region could even extend its lead over East Asia and the Pacific.
Much of the progress, however, is driven by India’s growth rebound and is not consistent across countries. Despite accelerating global growth and trade, exports remain weak. Progress on fiscal consolidation is slow, and deficits are high.

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