Skip to main content of main site

"Job creation comes to grinding halt under Modi government"

Date 25 May 2017 : देश में हैं करोड़ों बेरोजगार ! तीन साल जुमला सरकार 

 

"Job creation comes to grinding halt under Modi government"
  • Rate of job growth plummets to 9 year low; from 10.06% in 2009 to 1.55%
  • Unemployment up to 8.7% in 2015-16, compared to 7.7% in 2013-14
The Narendra Modi government was elected in 2014 after ten years of jobless growth under the Dr Manmohan Singh-led UPA government. There was immense anticipation from the country's unemployed and the poor that the benefits of India's economic growth will also reach them. The Bhartiya Janata Party had promised to generate one crore jobs in its manifesto, and develop India as one of the world's biggest economic powerhouses. As we take a look at many of the key economic indicators at the end of three years of the Modi government, the anguish felt by the crores of unemployed Indians is reflected in the bleak numbers. 
 
During a press conference addressed by National Spokersperson and senior leader of the Aam Aadmi Party, Ashutosh, he said "It is said that the first year of any government is for difficult and tough decisions, which start bearing fruit by the third year and the last two years are to campaign for the next election. The third anniversary of the Modi government is a good time to take a step back and objectively analyse the performance of thus much-hyped government. When we look at the numbers for the government's performance on the economic front, they present a picture of gloom and downturn. The numbers look worse than they were under the Dr Manmohan Singh government - a government which was thrown out by the people of this country in 2014. The truth of the matter is - Desh mein hain karodo berojgaar, Teen Saal Jumla Sarkar (Crores of people are unemployed after three years of Modi)."
 
The leader presented a deeply researched report made by the party on Modi government's performance of the last three years.
 
Jobs and Unemployment
 
The unemployment rate in 2013-14, during the UPA government at it's lowest point was 7.7, whereas the latest figures under the Modi government are abysmal at 8.7%. The reason for this is that the eight core sectors of India that drive growth and are labour intensive have consistently performed poorly under the Modi government. Only 1 lakh 10 thousand jobs were added in these, against the 1 crore promise made by the BJP. In the year 2009, under UPA government, 10.6 lakh new jobs were added. This figure has plummeted to 1.55 lakhs in 2015 and 2.31 lakhs in 2016. The job generation in these sectors under Modi government is half of that under the UPA.

 

Crisis in IT sector
 
The largest employers in the Informtion Technology (IT) industry are laying off people. These are the number of people laid off by each company: Tata Teleservices - 500, HSBC - 600, LT - 14000 , Wipro  -500, Cognizant- 6000, Flipkart - 700, Snapdeal - 600. A report by McKinsey says that 56,000 jobs are set to be lost in the IT sector in India. A senior executive of one of the top IT companies in India predicted that half of the employees currently employed in this sector will be redundant in the next three years. The IT sector could lose 2 lakh jobs per year over the next three years. The government has no plan of action to tackle such a massive churning and loss of jobs.
 
Stalled Infrastructure Projects
 
The number of stalled projects in 2016 was at its highest levels, making it the worst year for capex since December 1995. In April this year, India lost investment worth over a trillion rupees because seven major projects were abandoned. The average delay in grant of environmental clearances in 238 days under the current government, against the stipulated 105 days. A mere 11% projects have been granted clearances within the stipulated time. The 'Housing for all by 2022' scheme which promised to construct 2 crore houses by 2022 has only managed to build a total of 6716 houses by the end of 2016.
 
Other indicators
 
The government's flagship scheme - Start Up India has managed to disburse only Rs 5.66 crore, despite the sanctioned Budget for the program being a whopping Rs 10,000 crore.
 
India's export growth under the Modi government is the worst under any government in the last twenty years. The figures until 2016 from 2014 are an abysmal -4.7%, which means there has been negative growth. In comparison, under Vajpayee it was 14.8%, while under Dr Manmohan Singh, the figures were at 24.4% and 19.1% respectively for the two terms between 2004 and 2014.
 
The credit growth rate has hit rock bottom this year as it has reduced from 11.01% in January 2016 to 4.87% in February 2017. This indicates a severe stagnation of the economy. More importantly, there are many renowned economists from around the world who have claimed that India's government is fudging its GDP growth figures to look better. The government changed the methodology of calculating GDP figures and has come under attack for this.
 
The Modi government has been a phenomenal failure when it comes to its performance on the economy, despite having come to power on the back of fantastical promises on the economy as well as jobs.

 

Make a Donation