Will India's budget 2024 do a good job of job creation? Here's what Krishnamurthy Subramanian, Executive Director at IMF and India's former Chief Economic Adviser told WION's Molly Gambhir in an exclusive interaction.

Will India's budget 2024 do a good job of job creation? IMF Executive Director comments

<p>Union Minister HD Kumaraswamy on Saturday (Jun 15) said bringing the semiconductor sector to India is “strategic”, saying he was misquoted on earlier comments about a US company's investment in the sector.</p>

<p>The minister for steel and heavy industries clarified his purported comment about the US-based semiconductor firm Micron Technology getting subsidies for every job created in the western state of Gujarat.&nbsp;</p>

<h2><strong>India requires semiconductor sector</strong></h2>

<p>“Bringing semiconductor sector in India is strategic, we require it. Parallelly, we have to create jobs for the second-line sector, our small-scale industry...We are thinking about it and working out on it,” said the Indian minister on Saturday.&nbsp;</p>

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<p>The comment came after a report by the Times of India on Friday (Jun 14) said that Kumaraswamy ‘wondered aloud’ if India needed investments like Micron Technology.&nbsp;</p>

<p>The US-based firm is investing $2.5 billion in Gujarat and potentially receiving Rs 3.2 crore ($383,003) in subsidies for every job it creates,&nbsp;Kumaraswamy reportedly said.&nbsp;</p>

<p>“The new manufacturing unit will generate about 5,000 jobs. For this, we are giving them $2 billion in subsidies…If you calculate, that’s 70% of the company’s total investment,” TOI quoted him as saying, during an address to party workers in his native state of Karnataka in the south.&nbsp;</p>

<p>He added, “I asked officials how justifiable it is to allocate such a significant amount of funds. Conversely, there are small-scale industries…in Peenya (an industrial area in Bengaluru) there are small-scale industries. How many lakhs of jobs have they created? What benefits have we provided to them?”</p>

<p><strong>Also Read |&nbsp;<a href="https://www.wionews.com/india-news/who-is-hd-kumaraswamy-cm-turned-union-minister-in-modi-30-cabinet-730229">Who is HD Kumaraswamy? Former Karnataka CM becomes union minister in Modi 3.0 cabinet</a></strong></p>

<p>Kumaraswamy&nbsp;later clarified that he was not authorised to disclose this information, the TOI report said.&nbsp;</p>

<h2><strong>‘I have to be very cautious’</strong></h2>

<p>When asked about his comments, the Union&nbsp;Minister, on Saturday said, “I have been misquoted. I have not mentioned any state. Why has my statement been picked up like this? I have to be very cautious in the future.”</p>

<p>According to the media report, Kumaraswamy also thanked Prime Minister Narendra Modi for the portfolios assigned to him and said that he would focus on creating employment opportunities for the youth, during the address to party workers.&nbsp;</p>

<p><em>(With inputs from agencies)</em><br />
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Union Minister HD Kumaraswamy on Saturday (Jun 15) said bringing the semiconductor sector to India is “strategic”, saying he was misquoted on earlier comments about a US company's investment in the sector.

Union Minister HD Kumaraswamy on Saturday (Jun 15) said bringing the semiconductor sector to India is “strategic”, saying he was misquoted on earlier comments about a US company's investment in the sector. The minister for steel and heavy industries clarified his purported comment about the US-based semiconductor firm Micron Technology getting subsidies for every job created in the western state of Gujarat. India requires semiconductor sector “Bringing semiconductor sector in India is strategic, we require it. Parallelly, we have to create jobs for the second-line sector, our small-scale industry...We are thinking about it and working out on it,” said the Indian minister on Saturday. #WATCH | Karnataka: Union Minister HD Kumaraswamy clarifies on his purported comment regarding US Semiconductor firm, Micron Technology getting subsidies for every job created in Gujarat, says, "Bringing semiconductor sector in India is strategic, we require it. Parallelly, we… pic.twitter.com/CpnqIwTGhW — ANI (@ANI) June 15, 2024 × The comment came after a report by the Times of India on Friday (Jun 14) said that Kumaraswamy ‘wondered aloud’ if India needed investments like Micron Technology. The US-based firm is investing $2.5 billion in Gujarat and potentially receiving Rs 3.2 crore ($383,003) in subsidies for every job it creates, Kumaraswamy reportedly said. “The new manufacturing unit will generate about 5,000 jobs. For this, we are giving them $2 billion in subsidies…If you calculate, that’s 70% of the company’s total investment,” TOI quoted him as saying, during an address to party workers in his native state of Karnataka in the south. He added, “I asked officials how justifiable it is to allocate such a significant amount of funds. Conversely, there are small-scale industries…in Peenya (an industrial area in Bengaluru) there are small-scale industries. How many lakhs of jobs have they created? What benefits have we provided to them?” Also Read | Who is HD Kumaraswamy? Former Karnataka CM becomes union minister in Modi 3.0 cabinet Kumaraswamy later clarified that he was not authorised to disclose this information, the TOI report said. ‘I have to be very cautious’ When asked about his comments, the Union Minister, on Saturday said, “I have been misquoted. I have not mentioned any state. Why has my statement been picked up like this? I have to be very cautious in the future.” According to the media report, Kumaraswamy also thanked Prime Minister Narendra Modi for the portfolios assigned to him and said that he would focus on creating employment opportunities for the youth, during the address to party workers. (With inputs from agencies)

HD Kumaraswamy calls India’s semiconductor sector ‘strategic’; says 'misquoted' on job creation statement

<p>In the upcoming fiscal year, various budget proposals are poised to stimulate economic growth and generate employment in key sectors such as tourism, infrastructure, ports, construction, and technology. The government's commitment to comprehensive development and global branding of iconic tourist centres signals a strategic approach to tap into the vast opportunities within the tourism industry.</p>

<p>Finance Minister Nirmala Sitharaman emphasised the encouragement of states to undertake the holistic development of iconic tourist destinations. The focus includes global-scale branding, marketing initiatives, and the exploration of opportunities in spiritual tourism.&nbsp;</p>

<p>"States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at global scale... Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship," Sitharaman said in her budget speech.</p>

<p>Amid the pandemic, there has been a notable surge in domestic tourism. To capitalise on this trend, the budget proposes projects for port connectivity, tourism infrastructure, and amenities, particularly in island regions such as Lakshadweep. These endeavours aim not only to boost tourism but also to create additional employment opportunities.</p>

<p>"To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure and amenities will be taken up on our islands, including Lakshadweep. This will help in generating employment also," the finance minister said.</p>

<p><a href="https://www.wionews.com/india-news/budget-2024-amrit-peedhi-to-kartavya-kaal-all-new-hindi-phrases-used-by-nirmala-sitharaman-in-her-speech-685883">Also read |&nbsp;Budget 2024: 'Amrit Peedhi' to 'Kartavya Kaal', all new Hindi phrases used by Nirmala Sitharaman in her speech</a></p>

<h2><strong>Infrastructure boost</strong></h2>

<p>The budget outlines a significant 11 per cent increase in infrastructure capital expenditure (capex) for the fiscal year 2025, amounting to ₹11.11 trillion. This substantial investment is expected to generate both formal and informal jobs, providing a crucial stimulus to the economy.</p>

<p>Industry experts highlight the positive effects on the hospitality sector, foreseeing increased employment due to a rise in religious and business tourism.</p>

<p>Additionally, the construction sector is expected to benefit from the ambitious construction of two crore houses under the PM Awas Yojana (Grameen).</p>

<h2><strong>Technological advancements</strong></h2>

<p>The budget's forward-looking approach includes substantial investments in sunrise sectors and deep tech.</p>

<p><strong>Also watch |&nbsp;Budget 2024: Government working on all-round, all-pervasive, all-inclusive growth, says Sitharaman</strong></p>

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<p>The establishment of a ₹1 lakh crore corpus with a 50-year interest-free loan is particularly noteworthy. This corpus is designed to provide long-term financing, encouraging the private sector to scale up research and innovation in emerging technological domains.</p>

<p>"For our tech-savvy youth, this will be a golden era. A corpus of&nbsp;₹1 lakh crore will be established with a 50-year interest-free loan. The corpus will provide long-term financing or refinancing with long tenures and low or nil interest rates. This will encourage the private sector to scale up research and innovation significantly in sunrise domains," the finance minister said.</p>

<p><em>(With inputs from agencies)</em></p>


In the upcoming fiscal year, various budget proposals are poised to stimulate economic growth and generate employment in key sectors such as tourism, infrastructure, ports, construction, and technology.

In the upcoming fiscal year, various budget proposals are poised to stimulate economic growth and generate employment in key sectors such as tourism, infrastructure, ports, construction, and technology. The government's commitment to comprehensive development and global branding of iconic tourist centres signals a strategic approach to tap into the vast opportunities within the tourism industry. Finance Minister Nirmala Sitharaman emphasised the encouragement of states to undertake the holistic development of iconic tourist destinations. The focus includes global-scale branding, marketing initiatives, and the exploration of opportunities in spiritual tourism. "States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at global scale... Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship," Sitharaman said in her budget speech. Amid the pandemic, there has been a notable surge in domestic tourism. To capitalise on this trend, the budget proposes projects for port connectivity, tourism infrastructure, and amenities, particularly in island regions such as Lakshadweep. These endeavours aim not only to boost tourism but also to create additional employment opportunities. "To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure and amenities will be taken up on our islands, including Lakshadweep. This will help in generating employment also," the finance minister said. Also read | Budget 2024: 'Amrit Peedhi' to 'Kartavya Kaal', all new Hindi phrases used by Nirmala Sitharaman in her speech Infrastructure boost The budget outlines a significant 11 per cent increase in infrastructure capital expenditure (capex) for the fiscal year 2025, amounting to ₹11.11 trillion. This substantial investment is expected to generate both formal and informal jobs, providing a crucial stimulus to the economy. Industry experts highlight the positive effects on the hospitality sector, foreseeing increased employment due to a rise in religious and business tourism. Additionally, the construction sector is expected to benefit from the ambitious construction of two crore houses under the PM Awas Yojana (Grameen). Technological advancements The budget's forward-looking approach includes substantial investments in sunrise sectors and deep tech. Also watch | Budget 2024: Government working on all-round, all-pervasive, all-inclusive growth, says Sitharaman The establishment of a ₹1 lakh crore corpus with a 50-year interest-free loan is particularly noteworthy. This corpus is designed to provide long-term financing, encouraging the private sector to scale up research and innovation in emerging technological domains. "For our tech-savvy youth, this will be a golden era. A corpus of ₹1 lakh crore will be established with a 50-year interest-free loan. The corpus will provide long-term financing or refinancing with long tenures and low or nil interest rates. This will encourage the private sector to scale up research and innovation significantly in sunrise domains," the finance minister said. (With inputs from agencies)

India Interim Budget 2024: This is what is in store for jobs in tourism, infra, and deep tech

<p>Union Minister Nitin Gadkari on Saturday said that Micro, Small and Medium Enterprises (MSMEs) will play an important role in the job creation in the country.</p>

<p>Speaking at 'Laghu Udyog Bharati Rashtriya Adhiveshan'&nbsp;here, Gadkari said,&nbsp;"There are six crore MSMEs in the country. Out of them, 2 crore units have not registered themselves as MSME as of now. Till now 11.5 crore people have got employment in this sector. We have set a target of 5 crore new jobs from this sector."</p>

<p>"We have to work on achieving the target of becoming 5 trillion dollar economy set by Prime Minister Narendra Modi. In the GDP growth, 29 per cent growth belongs to MSMEs. In export, there is 40 per cent contribution of MSMEs," Gadkari said.</p>

<p>The Minister of Micro, Small and Medium Enterprises said, "We have to increase our export and limit the import. We have to do maximum capital investment in MSME sector to create job opportunities."</p>

<p>He spoke people living villages. "Today 65 per cent people live in rural areas. At the time of Mahatma Gandhi, 80 per cent of people lived in rural areas."So we also have to think about reforms in rural sector which include agriculture, handlooms, handicrafts and agro-processing industries," he added.&nbsp;</p>

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Union Minister Nitin Gadkari on Saturday said that Micro, Small and Medium Enterprises (MSMEs) will play an important role in the job creation in the country. Speaking at 'Laghu Udyog Bharati Rashtriya Adhiveshan' here, Gadkari said, "There are six crore MSMEs in the country.

Union Minister Nitin Gadkari on Saturday said that Micro, Small and Medium Enterprises (MSMEs) will play an important role in the job creation in the country. Speaking at 'Laghu Udyog Bharati Rashtriya Adhiveshan' here, Gadkari said, "There are six crore MSMEs in the country. Out of them, 2 crore units have not registered themselves as MSME as of now. Till now 11.5 crore people have got employment in this sector. We have set a target of 5 crore new jobs from this sector." "We have to work on achieving the target of becoming 5 trillion dollar economy set by Prime Minister Narendra Modi. In the GDP growth, 29 per cent growth belongs to MSMEs. In export, there is 40 per cent contribution of MSMEs," Gadkari said. The Minister of Micro, Small and Medium Enterprises said, "We have to increase our export and limit the import. We have to do maximum capital investment in MSME sector to create job opportunities." He spoke people living villages. "Today 65 per cent people live in rural areas. At the time of Mahatma Gandhi, 80 per cent of people lived in rural areas."So we also have to think about reforms in rural sector which include agriculture, handlooms, handicrafts and agro-processing industries," he added.

MSMEs will play important role in job creation: Nitin Gadkari

<p>US job creation accelerated in January, as labor markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported Friday.</p>

<p>The world&#39;s largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported.</p>

<p>The result beat forecasts, which predicted an increase of 180,000, and helped offset December&#39;s disappointing result.</p>

<p>Meanwhile, the unemployment rate remained at 4.1 percent for the fourth month in a row.</p>

<p>Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12-month increase in more than nine years. &nbsp;</p>

<p>That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do.</p>

<p>Hourly wages rose 0.3 percent from the prior month to $26.74, putting worker pay up 2.9 percent compared to January of last year, the largest 12-month gain since June 2009.</p>

<p>Over the same period, the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices.</p>

<p>The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil.</p>

<p>Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs.</p>

<p>The ranks of health care workers swelled for the month as well, adding 21,000 new positions.</p>

<p>Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000.</p>

<p>With the 4.1 percent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million.</p>

<p>However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 percent in January last year.</p>

<p>Trump took office a year ago, pledging to create 25 million new jobs over a decade or just over 200,000 per month.</p>

<p>However, Labor Department figures released Friday show the economy added 2.17 million jobs in 2017, fewer than 2016 when there were 2.34 million new jobs.</p>


The world's largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported

US job creation accelerated in January, as labor markets continued to absorb workers at a robust pace, unemployment clung to a record low and wages moved higher, the government reported Friday. The world's largest economy added 200,000 net new positions in the month, more than expected, driven by gains in construction, retail, restaurants and health care, the Labour Department reported. The result beat forecasts, which predicted an increase of 180,000, and helped offset December's disappointing result. Meanwhile, the unemployment rate remained at 4.1 percent for the fourth month in a row. Hourly wages continued to rise for the month as labour markets remained tight -- with wages posting their largest 12-month increase in more than nine years. That will strengthen the case for the Federal Reserve to raise the benchmark interest rate in March, as it is widely expected to do. Hourly wages rose 0.3 percent from the prior month to $26.74, putting worker pay up 2.9 percent compared to January of last year, the largest 12-month gain since June 2009. Over the same period, the consumer price index gained 2.1 percent, seasonally adjusted, but rising wages would be expected to put more pressure on prices. The solid job gains were sure to be a relief for an embattled White House, as President Donald Trump has taken credit for the extended run of good economic news amid political turmoil. Hiring by speciality trade contractors drove job creation in the construction sector, which added 36,000 new positions, while restaurants and bars added 31,000 new jobs. The ranks of health care workers swelled for the month as well, adding 21,000 new positions. Revisions to November and December subtracted a net 24,000 positions, bringing average job creation over the last three months of the year to 192,000, beating the 2017 monthly average of 181,000. With the 4.1 percent unemployment rate, a 17-year-low, the ranks of the long-term unemployed -- those looking for work for 27 weeks or longer -- continued to drop, falling six percent to 1.4 million. However, the unemployment rate for African-Americans, which Trump hailed this week in his State of the Union address, rose nine-tenths of a percentage point to 7.7 percent, just below the 7.8 percent in January last year. Trump took office a year ago, pledging to create 25 million new jobs over a decade or just over 200,000 per month. However, Labor Department figures released Friday show the economy added 2.17 million jobs in 2017, fewer than 2016 when there were 2.34 million new jobs.

US adds 200,000 new jobs in January

<p>Congress President Rahul Gandhi told&nbsp;NRIs in Bahrain on Monday that there &quot;is a serious problem at home&quot;.&nbsp;</p>

<p>He went on to say that &quot;job creation is at an eight-year low&quot;. And that instead of focusing on the &quot;removal of poverty&quot; and &quot;job creating&quot;, the country was instead seeing a rise in the &quot;forces of hate and division&quot;.&nbsp;</p>

<p>&quot;Instead of accepting that we are struggling to create jobs, instead of uniting people of all religions and communities together to face the challenge, the government is busy converting the fear being generated in jobless youth into hatred between communities,&quot; Gandhi said.&nbsp;</p>

<p>He added that he was there to tell the non-resident Indians what they meant to their country, and that they were part of the solution.&nbsp;</p>

<p>&quot;Your talent, skills, tolerance, patriotism is what India needs today. You have shown us how you have built the countries you have journeyed to,&quot; Gandhi added.&nbsp;</p>

<p>Gandhi was addressing the Global Organisation of People of Indian Origin in Bahrain.&nbsp;</p>

<p>Gandhi, who recently took over as president of the Congress party from his mother Sonia, has made some of his <a href="http://www.wionews.com/india-news/rahul-gandhi-in-us-makes-no-holds-barred-attack-on-pm-modi-20102" target="_blank">strongest attacks on the government</a>&nbsp;while abroad.&nbsp;</p>

<p>Also read:&nbsp;<a href="http://www.wionews.com/india-news/rahul-gandhi-gives-second-address-in-us-talks-jobs-20418" target="_blank">Central question</a><a href="http://www.wionews.com/india-news/rahul-gandhi-gives-second-address-in-us-talks-jobs-20418" target="_blank"> is how does India give its people jobs?</a>&nbsp;</p>

<p>ANI also reported Gandhi, while interacting with the Indian diaspora after his address, as saying that &quot;Gujarat BJP ka gadh hai aur wahan bach ke nikli hai BJP&quot;.&nbsp;</p>

<p>The BJP had recently <a href="http://www.wionews.com/india-news/bjp-wins-gujarat-but-does-not-cross-100-mark-takes-himachal-easily-27117" target="_blank">won the Gujarat elections</a>, coming back to power for a sixth time despite ruling the state for 22 years straight, where it won 99 seats against the Congress&#39; 77 in the 182-seat house.&nbsp;</p>

<p>BJP President Amit Shah had earlier said his party would win a total of 150 seats.&nbsp;</p>


Instead of focusing on the 'removal of poverty' and 'job creating', the country was instead seeing a rise in the 'forces of hate and division', Gandhi said

Congress President Rahul Gandhi told NRIs in Bahrain on Monday that there "is a serious problem at home". He went on to say that "job creation is at an eight-year low". And that instead of focusing on the "removal of poverty" and "job creating", the country was instead seeing a rise in the "forces of hate and division". "Instead of accepting that we are struggling to create jobs, instead of uniting people of all religions and communities together to face the challenge, the government is busy converting the fear being generated in jobless youth into hatred between communities," Gandhi said. He added that he was there to tell the non-resident Indians what they meant to their country, and that they were part of the solution. "Your talent, skills, tolerance, patriotism is what India needs today. You have shown us how you have built the countries you have journeyed to," Gandhi added. Gandhi was addressing the Global Organisation of People of Indian Origin in Bahrain. Gandhi, who recently took over as president of the Congress party from his mother Sonia, has made some of his strongest attacks on the government while abroad. Also read: Central question is how does India give its people jobs? ANI also reported Gandhi, while interacting with the Indian diaspora after his address, as saying that "Gujarat BJP ka gadh hai aur wahan bach ke nikli hai BJP". The BJP had recently won the Gujarat elections, coming back to power for a sixth time despite ruling the state for 22 years straight, where it won 99 seats against the Congress' 77 in the 182-seat house. BJP President Amit Shah had earlier said his party would win a total of 150 seats.

'Serious problem at home', job creation at 8-year low: Rahul Gandhi in Bahrain

<p>Over the past few months, the question of job creation, or lack thereof, in the formal sector of the economy has steadily been in the news. Clearly, the Modi government is feeling the pressure to do something, or at least to be seen to be doing something, about it. The first response to the accusation that the Indian government has failed on the job creation front was in the form of Amit Shah&rsquo;s statement that it was not jobs that were promised, but livelihoods. So the government would encourage self-employment. Never mind that self-employment has always been the fallback option for those not able to secure jobs. Half of the Indian workforce is self-employed.</p>

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<h5>The revelation that 10 million workers left out of the Employee Provident Fund Organization (EFPO) because of employers defaulting on their responsibilities have been registered during the EFPO amnesty program this year.</h5>
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<p>Since this response was unlikely to cut much ice, a second response has emerged over the last few weeks. This is to argue that in fact, India has a <a href="http://www.livemint.com/Politics/Le8m9TN1AqTmPQHwIilrBK/Formal-jobs-in-India-may-be-more-than-estimated.html">much larger formal workforce</a> than previously estimated. 15-25 per cent instead of the usually quoted figure of 7-10 per cent. This is asserted on the basis of the revelation that 10 million workers left out of the Employee Provident Fund Organization (EFPO) because of employers defaulting on their responsibilities have been registered during the EFPO amnesty program this year. The program (running from January 1st to June 30th) gave firms the opportunity to register workers that were off the books so far and pay their PF dues for a nominal fine of INR 1 per year.</p>

<p>The sudden 26 per cent increase in the size of the workforce that qualifies for PF is being billed as an increase in formal sector employment. Following up on this, a few days ago, <a href="http://www.livemint.com/Industry/IVO6Nu4mg8DaGzKR4czKJL/Panagariya-panel-suggests-redefining-formal-workforce.html">the NITI Aayog task force</a>, led by Chairman Arvind Panagariya and charged with reviewing the state of employment data, recommended that formal employment is redefined more &ldquo;pragmatically&rdquo; to include workers that are covered under PF, insurance, or pension schemes.&nbsp;</p>

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<h5>Of course, if receiving the &ldquo;formal&rdquo; label means these workers can now fight for better working conditions and more benefits, this would be welcome!&nbsp;</h5>
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<p>Now, bringing workers who qualify for PF, insurance, or pension schemes into the system so that they actually get the benefits they are supposed to and making sure companies are actually paying into the system, is, of course, a good idea. But using this as a way to underplay the jobs crisis is simply playing a numbers game.</p>

<p>Redefining informal workers as formal will look good on paper but does not change anything on the ground. In fact, it may even make things worse if the &ldquo;formal&rdquo; label ends up taking all such jobs off the radar for improvement in working conditions. This is because even jobs in which workers qualify for various benefits are often precarious, hazardous, or otherwise prone to malpractices (such as stealing of PF). Even contract workers can be on PF schemes. Of course, if receiving the &ldquo;formal&rdquo; label means these workers can now fight for better working conditions and more benefits, this would be welcome!&nbsp;</p>

<p>But the cynical use of data does not stop there. An article from a few days ago in the <a href="http://www.financialexpress.com/economy/job-creation-boost-pradhan-mantri-awas-yojna-urban-birthed-1-7-cr-jobs/769103/">Financial Express</a> is a master class in how media can be used for manipulation even in the staid world of economic statistics. The headline reads &ldquo;Job Creation Boost: Pradhan Mantri Awas Yojana Urban birthed 1.7 crore jobs.&rdquo; The highlighted summary goes: &ldquo;Two years after its launch, the Prime Minister Awas Yojna Urban (PMAY-U) may be off to a slow start, but the scheme has already employed close to 1.7 crore people so far, says a study.&rdquo; This article has been tweeted and retweeted as proof of the success of the Modi government in job creation.</p>

<p>Closer examination reveals that the Express report is based on a study by the National Council for Applied Economic Research (NCAER) published in April 2014. This study uses input-output data from the Central Statistical Organisation and employment data from the National Sample Survey from the year 2009-2010 to show that for every lakh rupees invested in the housing sector, 2.69 new jobs (2.65 informal and 0.4 formal) are created in the economy. So with an estimated investment of Rs 42,160 crore under the Awas Yojana, employment of 1.71 crores should be generated. Thus, we arrive at the 1.7 crore jobs figure.</p>

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<h5>What we need is a genuine policy response that can increase the number of decent, secure jobs, paying at the minimum the government class IV monthly salary.</h5>
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<p>So note the data gymnastics here. Firstly, the study is based on data from the UPA-II regime and was published before the present government came to power. Secondly, it is based on indirect input-output analysis, not on any survey of actually created jobs. Thirdly, according to the study, 87 per cent of the jobs created would be informal. Fourthly, it is well known that the construction sector has been a principal source of (informal) jobs in the past few years.</p>

<p>So in sum, a three old study based on seven-year-old data confirms what we know about informal job creation in the construction sector and is not designed to say anything about the current debate on how to create decent, formal jobs. What we need is a genuine policy response that can increase the number of decent, secure jobs, paying at the minimum the government class IV monthly salary. What we are getting instead is a juggling of the numbers and misleading headlines.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>


Even jobs in which workers qualify for various benefits are often precarious, hazardous, or otherwise prone to malpractices

Over the past few months, the question of job creation, or lack thereof, in the formal sector of the economy has steadily been in the news. Clearly, the Modi government is feeling the pressure to do something, or at least to be seen to be doing something, about it. The first response to the accusation that the Indian government has failed on the job creation front was in the form of Amit Shah’s statement that it was not jobs that were promised, but livelihoods. So the government would encourage self-employment. Never mind that self-employment has always been the fallback option for those not able to secure jobs. Half of the Indian workforce is self-employed. The revelation that 10 million workers left out of the Employee Provident Fund Organization (EFPO) because of employers defaulting on their responsibilities have been registered during the EFPO amnesty program this year. × Since this response was unlikely to cut much ice, a second response has emerged over the last few weeks. This is to argue that in fact, India has a much larger formal workforce than previously estimated. 15-25 per cent instead of the usually quoted figure of 7-10 per cent. This is asserted on the basis of the revelation that 10 million workers left out of the Employee Provident Fund Organization (EFPO) because of employers defaulting on their responsibilities have been registered during the EFPO amnesty program this year. The program (running from January 1st to June 30th) gave firms the opportunity to register workers that were off the books so far and pay their PF dues for a nominal fine of INR 1 per year. The sudden 26 per cent increase in the size of the workforce that qualifies for PF is being billed as an increase in formal sector employment. Following up on this, a few days ago, the NITI Aayog task force, led by Chairman Arvind Panagariya and charged with reviewing the state of employment data, recommended that formal employment is redefined more “pragmatically” to include workers that are covered under PF, insurance, or pension schemes. Of course, if receiving the “formal” label means these workers can now fight for better working conditions and more benefits, this would be welcome! × Now, bringing workers who qualify for PF, insurance, or pension schemes into the system so that they actually get the benefits they are supposed to and making sure companies are actually paying into the system, is, of course, a good idea. But using this as a way to underplay the jobs crisis is simply playing a numbers game. Redefining informal workers as formal will look good on paper but does not change anything on the ground. In fact, it may even make things worse if the “formal” label ends up taking all such jobs off the radar for improvement in working conditions. This is because even jobs in which workers qualify for various benefits are often precarious, hazardous, or otherwise prone to malpractices (such as stealing of PF). Even contract workers can be on PF schemes. Of course, if receiving the “formal” label means these workers can now fight for better working conditions and more benefits, this would be welcome! But the cynical use of data does not stop there. An article from a few days ago in the Financial Express is a master class in how media can be used for manipulation even in the staid world of economic statistics. The headline reads “Job Creation Boost: Pradhan Mantri Awas Yojana Urban birthed 1.7 crore jobs.” The highlighted summary goes: “Two years after its launch, the Prime Minister Awas Yojna Urban (PMAY-U) may be off to a slow start, but the scheme has already employed close to 1.7 crore people so far, says a study.” This article has been tweeted and retweeted as proof of the success of the Modi government in job creation. Closer examination reveals that the Express report is based on a study by the National Council for Applied Economic Research (NCAER) published in April 2014. This study uses input-output data from the Central Statistical Organisation and employment data from the National Sample Survey from the year 2009-2010 to show that for every lakh rupees invested in the housing sector, 2.69 new jobs (2.65 informal and 0.4 formal) are created in the economy. So with an estimated investment of Rs 42,160 crore under the Awas Yojana, employment of 1.71 crores should be generated. Thus, we arrive at the 1.7 crore jobs figure. What we need is a genuine policy response that can increase the number of decent, secure jobs, paying at the minimum the government class IV monthly salary. × So note the data gymnastics here. Firstly, the study is based on data from the UPA-II regime and was published before the present government came to power. Secondly, it is based on indirect input-output analysis, not on any survey of actually created jobs. Thirdly, according to the study, 87 per cent of the jobs created would be informal. Fourthly, it is well known that the construction sector has been a principal source of (informal) jobs in the past few years. So in sum, a three old study based on seven-year-old data confirms what we know about informal job creation in the construction sector and is not designed to say anything about the current debate on how to create decent, formal jobs. What we need is a genuine policy response that can increase the number of decent, secure jobs, paying at the minimum the government class IV monthly salary. What we are getting instead is a juggling of the numbers and misleading headlines.

Let us not make job creation in India a number game

<p>First, consider the numbers. Between 2003 and 2009, the high growth years of the economy, when GDP grew by 8 per cent per year on average, the number of good jobs, that is, jobs in the formal sector of the economy, grew at not even one-tenth that number. Look at it another way. Every year millions of new aspirants enter the job market to compete for a few hundred thousand new jobs.&nbsp;</p>

<p>&nbsp;</p>

<p>Now let us descend to the ground. We witness enormous agitations for reservations in government jobs rising from traditionally dominant castes, such as Jats, Patels, and Marathas. Even the lowest paid government jobs regularly attract such large numbers of extremely over-qualified applicants that violence ensues in the wake of examinations. Around two weeks ago, in West Bengal, 2.5 million young men and women appeared for an exam for 6000 Group-D positions in the state government. Graduates and post-graduates had applied for these positions which require an elementary school certificate and pay Rs. 16,200 per month.&nbsp;</p>

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<h5>What is the economy for, anyway? It is always a good question to ask whenever we risk getting lost in GDP numbers, policy reforms, and stock market movements</h5>
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<p>One increasingly popular term captures all this: &ldquo;jobless growth.&rdquo; While this phenomenon has been known at least since the mid-1990s, and is observed across the world, it is becoming a hot political issue. And not a day too soon.&nbsp;</p>

<p>&nbsp;</p>

<p>What is the economy for, anyway? It is always a good question to ask whenever we risk getting lost in GDP numbers, policy reforms, and stock market movements. These are all means to an end, viz. enabling all of us to enjoy fulfilling, creative, happy lives. In a market economy, adequate regular money income is a precondition for such a life. Yet our economy continues to deny this precondition to the vast majority of its workers. So, while GDP grows at some of the fastest rates seen across the world, the number of people who are able to enjoy a good life increase at a much much slower rate. And even this increase is very uneven across regions, occupations, castes, genders, and religions with some, like displaced farmers and artisans seeing declines in their living standards.&nbsp;</p>

<p>&nbsp;</p>

<p>Riding a wave of resentment against the previous regime, the Prime Minister himself made jobs a central issue during his campaign. But three years later, not much has changed and the BJP government is being seen as a failure on the job creation front. After several weeks of bad press on this issue, a few days ago, BJP President Amit Shah issued a statement that it was not possible to provide formal sector jobs to everyone in a country of 125&nbsp; crore people. This is a telling as well as an astonishing statement. Telling because it admits to a truth that few would admit to. That under the present set of policies (whether BJP or UPA) universal employment is impossible. Astonishing because for decades the transition to a completely formal economy has been the very definition of development. That we, and many other countries, have failed at acheiving this is surely an indictment of our policies. But are we then giving up on development? Or are we redefining it? And if so how? There is no answer.</p>

<p>&nbsp;</p>

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<h5>Regular salaried workers account for only 20 per cent of all workers in India</h5>
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<p>The intense hunger for even the lowest paid government jobs comes as no surprise once we take a look at the Ministry of Labour numbers on earnings in the Indian labour market. According to the most recent Employment-Unemployment Survey of the Labour Bureau (2014-2015), regular salaried workers account for only 20 per cent of all workers in India. Earnings from either self-employment or casual wage work (both of which together account for the remaining 80 per cent of the workforce) fall far short of a secure, decent, livelihood.&nbsp;</p>

<p>&nbsp;</p>

<p>Nationally, 67 per cent of households reports monthly earnings of Rs. 10,000 or less. 98 per cent are under Rs. 50,000 per month. Earning over Rs 1 lakh per month puts a household in the top 0.2 per cent of income earners in the country.&nbsp; More than half of the regular wage/salaried workers i.e. 57 per cent have monthly average earnings of up to Rs 10,000, well under the government minimum salary under the 7th pay commission. 59 per cent of the casual workers has monthly earnings of up to Rs 5000.</p>

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<h5>Successive governments at the Centre and in the states have embraced liberalisation and privatisation policies that have failed to generate jobs</h5>
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<p>Of course, the current government in Delhi must take its share of the blame for the jobs crisis. But there is plenty of blame to go around. Successive governments at the Centre and in the states have embraced liberalisation and privatisation policies that have failed to generate jobs.&nbsp;</p>

<p>&nbsp;</p>

<p>But the problem goes beyond India too. In the 1950s-80s, in Japan, Korea and the other &ldquo;East Asian Miracle countries&rdquo;, rapid GDP growth generated a vast number of jobs. This shifted a predominantly agricultural workforce to manufacturing and services. Not only that, jobs were created in the formal sector.&nbsp;</p>

<p>&nbsp;</p>

<p>In contrast, in India and China, particularly since the 1990s, despite high levels of growth, formal employment generation has been slow. This is a general phenomenon across Asia. Manufacturing, in particular, is a big concern. In the 2005-2011 period, according to National Sample Survey data, manufacturing employment in India increased by 6 million while that in construction increased by 25 million. Construction accounted for half of all new non-agricultural jobs added in this period. The &ldquo;Make in India&rdquo; campaign aims to generate 100 million jobs by 2022 in the manufacturing sector. While the goal is laudable, given trends reported above, this seems unlikely to materialise. And Amit Shah&rsquo;s statement, referred to earlier, seems to indicate that backpedaling on this issue has started already.</p>

<p>&nbsp;</p>


While GDP grows at some of the fastest rates seen across the world, the number of people who are able to enjoy a good life increase at a much much slower rate.

First, consider the numbers. Between 2003 and 2009, the high growth years of the economy, when GDP grew by 8 per cent per year on average, the number of good jobs, that is, jobs in the formal sector of the economy, grew at not even one-tenth that number. Look at it another way. Every year millions of new aspirants enter the job market to compete for a few hundred thousand new jobs. Now let us descend to the ground. We witness enormous agitations for reservations in government jobs rising from traditionally dominant castes, such as Jats, Patels, and Marathas. Even the lowest paid government jobs regularly attract such large numbers of extremely over-qualified applicants that violence ensues in the wake of examinations. Around two weeks ago, in West Bengal, 2.5 million young men and women appeared for an exam for 6000 Group-D positions in the state government. Graduates and post-graduates had applied for these positions which require an elementary school certificate and pay Rs. 16,200 per month. What is the economy for, anyway? It is always a good question to ask whenever we risk getting lost in GDP numbers, policy reforms, and stock market movements × One increasingly popular term captures all this: “jobless growth.” While this phenomenon has been known at least since the mid-1990s, and is observed across the world, it is becoming a hot political issue. And not a day too soon. What is the economy for, anyway? It is always a good question to ask whenever we risk getting lost in GDP numbers, policy reforms, and stock market movements. These are all means to an end, viz. enabling all of us to enjoy fulfilling, creative, happy lives. In a market economy, adequate regular money income is a precondition for such a life. Yet our economy continues to deny this precondition to the vast majority of its workers. So, while GDP grows at some of the fastest rates seen across the world, the number of people who are able to enjoy a good life increase at a much much slower rate. And even this increase is very uneven across regions, occupations, castes, genders, and religions with some, like displaced farmers and artisans seeing declines in their living standards. Riding a wave of resentment against the previous regime, the Prime Minister himself made jobs a central issue during his campaign. But three years later, not much has changed and the BJP government is being seen as a failure on the job creation front. After several weeks of bad press on this issue, a few days ago, BJP President Amit Shah issued a statement that it was not possible to provide formal sector jobs to everyone in a country of 125 crore people. This is a telling as well as an astonishing statement. Telling because it admits to a truth that few would admit to. That under the present set of policies (whether BJP or UPA) universal employment is impossible. Astonishing because for decades the transition to a completely formal economy has been the very definition of development. That we, and many other countries, have failed at acheiving this is surely an indictment of our policies. But are we then giving up on development? Or are we redefining it? And if so how? There is no answer. Regular salaried workers account for only 20 per cent of all workers in India × The intense hunger for even the lowest paid government jobs comes as no surprise once we take a look at the Ministry of Labour numbers on earnings in the Indian labour market. According to the most recent Employment-Unemployment Survey of the Labour Bureau (2014-2015), regular salaried workers account for only 20 per cent of all workers in India. Earnings from either self-employment or casual wage work (both of which together account for the remaining 80 per cent of the workforce) fall far short of a secure, decent, livelihood. Nationally, 67 per cent of households reports monthly earnings of Rs. 10,000 or less. 98 per cent are under Rs. 50,000 per month. Earning over Rs 1 lakh per month puts a household in the top 0.2 per cent of income earners in the country. More than half of the regular wage/salaried workers i.e. 57 per cent have monthly average earnings of up to Rs 10,000, well under the government minimum salary under the 7th pay commission. 59 per cent of the casual workers has monthly earnings of up to Rs 5000. Successive governments at the Centre and in the states have embraced liberalisation and privatisation policies that have failed to generate jobs × Of course, the current government in Delhi must take its share of the blame for the jobs crisis. But there is plenty of blame to go around. Successive governments at the Centre and in the states have embraced liberalisation and privatisation policies that have failed to generate jobs. But the problem goes beyond India too. In the 1950s-80s, in Japan, Korea and the other “East Asian Miracle countries”, rapid GDP growth generated a vast number of jobs. This shifted a predominantly agricultural workforce to manufacturing and services. Not only that, jobs were created in the formal sector. In contrast, in India and China, particularly since the 1990s, despite high levels of growth, formal employment generation has been slow. This is a general phenomenon across Asia. Manufacturing, in particular, is a big concern. In the 2005-2011 period, according to National Sample Survey data, manufacturing employment in India increased by 6 million while that in construction increased by 25 million. Construction accounted for half of all new non-agricultural jobs added in this period. The “Make in India” campaign aims to generate 100 million jobs by 2022 in the manufacturing sector. While the goal is laudable, given trends reported above, this seems unlikely to materialise. And Amit Shah’s statement, referred to earlier, seems to indicate that backpedaling on this issue has started already.

Jobless growth plagues India

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