India needs to create 8.1m jobs annually

Maricruz Casares
Abril 17, 2018

According to the report, India's growth is expected to accelerate from 6.7 in 2017 to 7.3 percent in 2018 and to subsequently stabilize supported by a sustained recovery in private investment and private consumption.

It further said that India's economy recovered from the effects of demonetisation and the implementation of the Goods and Services Tax.

The bank exhorted India to accelerate investments and exports to take advantage of the recovery in global growth, saying eight million jobs needed to be created every year to make up for the number of women who leave the job market.

In 2015-16, the labor-force participation for males was 75.5%, while that for females was a meager 27.4%, it noted.

In its biannual South Asia Economic Focus (SAEF) report released in Washington on Sunday, the multilateral lender also projected India's growth rate to rise to 7.3 per cent in the ongoing fiscal.

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Downside risks to the global economy and accordingly to export growth and capital flows are also substantial given the possibility of monetary policy normalisation in the U.S. and risks of protectionism, the World Bank said.

Much of the progress, however, is driven by India's growth rebound and is not consistent across countries.

"But providing opportunities to these young entrants while attracting more women into the labor market, will require generating even more jobs for every point of economic growth, " she added. Progress on fiscal consolidation is slow, and deficits are high.

It points out that growth is essential, but the South Asia region can't rely only on high growth for the employment rate.

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