Citigroup warns of lack of job creation in India amid rapid economic growth
(MENAFN) Researchers at Citigroup have highlighted significant challenges facing India's rapidly expanding yet deeply unequal economy, particularly in the context of job creation. Despite impressive real GDP growth projections of 7 percent annually, Citigroup's economists estimate that the country can only generate about 9 million jobs per year. This falls short of the approximately 12 million new jobs needed annually to absorb the burgeoning young workforce.
The report underscores that achieving GDP growth above 7 percent is crucial to meet India’s employment demands, especially as automation and mechanization threaten to further limit job flexibility. The issue of job creation has become a politically sensitive topic for Prime Minister Narendra Modi’s government, which faced electoral setbacks partly due to dissatisfaction with job opportunities. In response to the Citi report, India’s Ministry of Labour and Employment criticized the analysis for overlooking positive official data. On the same day, the Indian central bank released its own estimate, reporting that the country had added 46.7 million jobs in the fiscal year ending in March, surpassing private sector surveys.
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