In India, the focus now is on creating more and more employment opportunities by the central government and various state governments. According to a report by the Center for Monitoring Indian Economy (CMIE), 88 lakh people have found employment in the country in April 2022.
In the aftermath of the Corona epidemic, especially in developed countries, the possibility of an economic downturn is being seen in these countries due to the increase in interest rates aimed at curbing the rapidly rising inflation. An economic downturn means a decline in demand for goods due to a stabilization of the rate of economic growth and a period of negative growth. This situation cannot be considered good for any country as the closure of the economic cycle leads to a decline in the production of goods and also a decrease in employment opportunities which makes the problem of unemployment more serious. Declining economic activity tends to reduce the revenue of governments and governments face many difficulties in running their systems. If the economic downturn in a developed country lasts for a long time, it can surround the whole world by other countries doing foreign trade with this country just like the disease of untouchability.
There are serious suspicions of an economic downturn in some countries, but the Indian economy is seeing a steady improvement in economic activity. This is due to the economic decisions taken by the Central Government and some State Governments (especially Uttar Pradesh, Gujarat, Karnataka, Tamil Nadu, etc.), due to the continuous improvement in social services. In the last 8 years, the central government has focused on infrastructure development and social services. In these 8 years, the Central Government has spent about Rs. 100 lakh crore on development and social sector programs. Between 2014-15 and 2021-22, the central government has spent Rs 26 lakh crore on infrastructure development. Rs 25 lakh crore has been spent on food, fertilizer and fuel subsidies and Rs 10 lakh crore on social services.
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According to the latest data released by the National Statistical Organization, India’s GDP grew by 8.7 per cent in FY2021-22 as against 6.6 per cent in FY2021-21. All sectors of the economy, such as agriculture, industry and services, have been steadily improving since the Corona epidemic. The manufacturing sector grew by 9.9 per cent in FY2021-22, compared to a negative 0.6 per cent in FY2021-21. Similarly, the mining sector has achieved a growth rate of 11.5 per cent, which was negative 8.6 per cent over the same period last year. Not only has the growth rate in these sectors been good in FY 2021-22, but it has also been strong in April and May of FY 2022-23. The development of the country’s eight major industries has boomed. The core sector grew by 18.1 per cent in May 2022, compared to 9.3 per cent in April 2022. In March 2022, the growth rate was 4.9 percent. According to data released by the Department of Commerce and Industry, in May 2022, the coal industry accounted for 25.1 per cent (April 2022), the fertilizer industry 22.8 per cent (8.7 per cent), the cement industry 26.3 per cent (8 per cent) and the power sector 22 per cent (10.7 per cent). The refinery sector grew by 16.7 per cent (9.2 per cent), natural gas by 7 per cent and steel by 15 per cent.
In India, the focus now is on creating more and more employment opportunities by the central government and various state governments. According to a report by the Center for Monitoring Indian Economy (CMIE), 88 lakh people have found employment in the country in April 2022. This is the highest number of jobs in any one month since the Corona epidemic. With this, the total labor force in the country has increased to 43.72 crore. Within the industry, 30 lakh new jobs were created in the manufacturing sector, while about 40 lakh new jobs were created in the construction sector. Similarly, in the financial year 2022-23, many employment opportunities are going to be created in the IT (Information Technology) sector. Only two companies, Tata Consultancy Services and Infosys, plan to hire 90,000 engineers. Similarly, a large number of new employment opportunities are being created by other companies. The type of employment in the country is also changing nowadays. In small projects, short-term employment opportunities are created for business / experienced / skilled people, and employment is lost as soon as the project is completed, this is called “gig” economy. According to the policy commission, by the year 2030, India is expected to employ 235 crore people in the gig economy, while in the financial year 2020, the sector employed 68 lakh people. Filling of vacancies in various government institutions is also in full swing and about 10 lakh new recruits are being recruited soon. The Agneepath scheme, recently implemented by the Union Ministry of Defense, is set to create millions of jobs in the near future.
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Under the Product Based Incentive (PLI) scheme launched by the Central Government, Rs. 2.34 lakh crore new investment proposals have been received. This will increase production as well as create new employment opportunities through these new manufacturing units. According to the central government, the scheme will create 60 lakh 45 thousand new jobs in the next five years. Free trade agreements are being made with various countries, which will increase exports from India to these countries and increase manufacturing activities in India itself. Most recently, these agreements have been implemented with the United Arab Emirates (UAE) and Australia, and discussions are underway with the European Union and the US.
Addressing the BRICS Business Forum at the 14th Summit of BRICS countries (Brazil, Russia, India, China and South Africa), Indian Prime Minister Narendra Modi said that India’s growing digital economy, development of infrastructure sectors, growing start-ups, drones. Innovation in every field, including green energy and space, has made India the world’s third largest economy. The Prime Minister said that India has adopted the mantra of reform and change to address the economic problems caused by the epidemic. As a result, the Indian digital economy will reach ટ્ર 1 trillion by the year 2025.
Along with the digital economy, India has also witnessed the fastest growth in the renewable energy sector in the last 8 years. Since 2014, India has grown 18 times in solar energy while 1.97 times in renewable energy. In 2013, India’s renewable energy capacity was 27,542 MW which has increased to 156,608 MW in 8 years. India has set a target of generating 500 gigawatts of renewable energy by 2030. Similarly, India has set a target of getting 40 per cent of its installed electricity from non-fossil fuels in the next 8 years. According to the Central Electricity Authority, the combined installed capacity of solar and wind energy in India will now increase from 23 per cent to 51 per cent in the next eight years.
India’s economy is strengthening, as evidenced by the fact that in June 2022, the country’s goods and services tax collection grew by 56 per cent year-on-year. The government has received a total of Rs 1.44 lakh crore from GST in June this year. This is the second best month in terms of collection. Earlier, in May 2022, Rs 1.41 lakh crore was collected.
Retired Deputy General Manager
State Bank of India