Last Week, Nobel laureate Paul Krugman ruffled India's growth story feather by saying that either India could capitalise on next wave of globalisation or could end up in mass employment if the country does not expand its manufacturing sector. And CEA Arvind Subramanian agrees with him. Here's what he said:
Last Week, Nobel laureate Paul Krugman ruffled India’s growth story feather by saying that either India could capitalise on next wave of globalisation or could end up in mass employment if the country does not expand its manufacturing sector. And government’s Chief Economic Advisor Arvind Subramanian has nodded in agreement. Addressing students of Delhi School of Economics (DSE) on Thursday, Arvind Subramanian said that he was not sure if India’s manufacturing sector will continue to generate employment as it was doing in the past.
But the CEA also offered an alternative: Construction, agriculture and services can be more employment generators in future. Arvind Subramanian admitted that India has missed the manufacturing bus 20-30 years ago. After Paul Krugman’s analysis of India’s jobs trend, a lot of buzz was created, with former star banker Raghuram Rajan also commenting on similar lines that India’s 7.5% growth rate is not enough to generate 12 million needed jobs.
It is no longer an unknown fact that not just India’s job market, but the job market world over is changing dynamically and there is an urgent need to reskill as the world is entering the fourth industrial revolution. Artificial Intelligence, data, content are going to dominate the market soon among other factors.
However, as CEA said that for India as nearly 69% of total population is rural population, construction, agriculture and services could be a game changer in coming days. According to a recent jobs survey report by ManpowerGroup India, in the first quarter of FY19, services sector will be the biggest job creator among key seven sectors followed by finance, insurance and real estate. For a long-term sustainable growth, the World Bank noted that India needs to good salaried jobs, with which India’s economic growth will not accelerate its pace from the expected 7.5% levels.