Niti Aayog Vice-Chairman Arvind Panagariya on Thursday brushed aside criticism that India’s economy is growing without creating jobs and said fears over protectionism were exaggerated.
Niti Aayog Vice-Chairman Arvind Panagariya on Thursday brushed aside criticism that India’s economy is growing without creating jobs and said fears over protectionism were exaggerated. “The whole point we continuously make about jobless growth is little bit bogus,” Panagariya said at a discussion forum organised by the Reserve Bank of India in Mumbai. “The point that I have to make is that when such growth happens — 7-8%, it cannot be jobless. Jobs are being created. Unfortunately, we are not counting them because there are not credible surveys,” he added.
However, he did not share any data on job creation in India, but added that the country needs to attract global firms to set up their manufacturing base in the country to create more jobs. “We must get our house in order and create incentives in our system so that the global firms come to us and not to Vietnam or Bangladesh,” Panagariya said.
Although there is some threat from protectionism, it seems to be moderating a bit in the way it has evolved in the last six months, he said, adding that India’s share in the global export market for goods and services is only 1.7% and the focus should be on growing that. The total export market for merchandise is $18 trillion and the services market is another $5-6 trillion, he said.