Ex-RBI governor thinks inflation situation is different in India. There are elements of supply chain issues and commodity price rises but the imbalance is due to higher spending by upper-middle-class.
Jobs increased across industry and services sectors. In manufacturing, metals, chemicals and cement added jobs, while in services, retail, hotels and restaurants were the segments that added jobs.
Both CMIE and ILO data shows a dramatic drop in India's labour participation rate; over half of the employable population out of the market.
CMIE managing director and CEO Mahesh Vyas says though rural unemployment rate has fallen, the quality of jobs both in urban and rural India is deteriorating.
High unemployment combined with a declining real wage rate in a labour-surplus nation will continue to impose negative effects on components of growth.
In a conversation earlier this year, Banerjee spoke to Fortune India about a host of economic issues, including the performance of Modi 1.0.
TCS and Infosys together hired over 50,000 employees in 2018-19, up from 11,000 in the previous year.
The report says the “beginning of the decline in jobs” coincided with the Modi government’s demonetisation move in November 2016, although “no direct causal relationship can be established”.
The country is facing a grave unemployment and underemployment crisis and it’s only likely to become worse.
