DNA Money Edit: Economic growth counts, not jobless one

A World Bank (WB) report titled ‘Jobless Growth?’ has stated that South Asia has regained its lead as the fastest growing region in the world, supported by a sizable recovery in India. In its twice-a-year South Asia Economic Focus (SAEF), the bank said the region could even extend its lead over East Asia and the Pacific. Much of the progress, according to WB, is driven by India’s growth rebound.

But the report has raised concerns that India needs to create 8.1 million jobs a year to maintain its employment rate, which has been on the slide, as per the employment data analysed from 2005 to 2015, largely due to women leaving the job market. The World Bank has predicted India’s growth to accelerate to 7.3% in 2018 from 6.7% in 2017, and later stabilise, supported by a sustained recovery in private investment and private consumption. The Bank has rightly suggested that New Delhi should strive to accelerate investments and exports to take advantage of the recovery in global growth.

The government is facing the music that India’s economic growth is not supported by employment generation that ought to run parallel. It is crucial for the government to push up employment rate as it faces general elections in 2019.