India needs to create 8.1 million jobs a year to maintain its employment rate, said a World Bank report, while predicting that the country will grow 7.3 per cent in the current financial year.
“Growth is expected to accelerate from 6.7 per cent in 2017 to 7.3 per cent in 2018 and to subsequently stabilise supported by a sustained recovery in private investment and private consumption,” the World Bank said in its twice-a-year South Asia Economic Focus (SAFE).
In the India section of the report, the bank acknowledged that disruptions from demonetisation and events surrounding the implementation of GST led to a setback in economic activity and a potentially larger negative effect on the poor and vulnerable. However the country has recovered from the withdrawal of large denomination bank notes in November 2016, and the rollout of the Goods and Services Tax (GST) in July 2017, it added.
The report titled ‘Jobless Growth?’, said the growth will rise to 7.5 per cent in 2019 and 2020 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 force 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 analysed from 2005 to 2015, largely due to women leaving the job market,” it said.
But providing opportunities to these young entrants while attracting more women into the labour market will require generating even more jobs for every point of economic growth, it said.