December 12, 2016
Narendra Modi, India’s can-do prime minister swept to victory two years ago, promising ‘Acche Din Aane Wale Hain’. He promised to improve his country’s business climate and boost its underwhelming image on the world stage.
Now it’s the time to access the performance. The feeling of ‘Acche Din’ is subjective, yet there would be at least two clear tests of better times – the GDP growth rate and job growth rate. Let’s find out how well has the modi-fication worked.
Job creation has always been one of the priority areas for the Narendra Modi government. The recent data released by government, however shows a very different picture.
The True Picture
Job creation has been suffering under Modi government, and the bad news on the jobs’ front needs the focus of youth and job seekers in India. We have taken into consideration some facts from the Indian Labour Bureau, which compiles data every quarter on eight selected sectors. These sectors include – textiles including apparels, leather, metals, automobiles, gems and jewellery, transport, IT/BPO and handlooms/power looms.
There have been so many expectations of improvement pertaining to growth rate since Modi’s regime, while there is no sign of appreciable improvement in the employment. In the December quarter of 2015, there was a decline of 20,000 jobs across all the eight labour intensive sectors and no new jobs were created.
The factsheet released by the Labour Bureau shows the extent of worry on this count:
It may also be noted that the September quarter of 2015 had added 1.34 lakh new jobs, and was still the slowest quarter in the previous six years. Moreover, the total number of new jobs created across the eight sectors during 2015 stood at just 1.35 lakh. This is the slowest pace of new jobs being created since 2009.
From the graph, it is evident that – In the first year of the Modi government (2014), 4.93 lakh jobs were added across these eight sectors.
But what happened after that?
After the first full year of this government, job addition fell to just a fourth of 2014 and was, a tenth of the growth seen in 2009.
Looking back to Modi’s statement in 2013, he said,
“If BJP comes to power, it will provide one crore jobs which the current government couldn’t do. The youth, currently struggling with unemployment, can be galvanised into a force for the development of the country.”
Is India Witnessing a Jobless Growth?
India is currently under jobless growth, an economic phenomenon in which a macro economy experiences growth while decreasing its level of employment. The expansion in India’s formal workforce is declining and the reasons are: falling exports, weak manufacturing, lack of momentum in infrastructure, and listless private investment, among others.
There’s a chance of India facing the risk of stagnation under massive unemployment. Dealing with its consequences, while simultaneously creating enough non-farm employment opportunities, is going to be Narendra Modi government’s biggest challenge-both economically and politically.
Make in India – Two Years in Review
‘Make in India’ is two-year old today. The campaign was launched with the twin objectives of growing the share of GDP and generating massive employment opportunities for India’s young population. Let’s have a look on what has been the success of this massive dream project of PM Modi.
The truth is out! Make in India didn’t exactly turn up the way Modi government wanted it to be. He launched the campaign to generate skilled workforce, but reports reveal that unless urgent steps are taken, Make in India will remain a non-starter.
This jobless growth in India may lead to loss of faith, unrest and negative sentiments. People have pinned their hopes for growth but a jobless economic growth could potentially fade away the ‘Acche Din’ mirage very soon.