India economy news: Youth and women suffering the most, says Anand Mahindra on India’s economy

Mahindra Group chairman Anand Mahindra on Friday stressed the need to boost manufacturing to create jobs on a large scale and take advantage of the global factors working in India’s favor.

Mahindra said there are a number of gaps that need to be filled in order to take full advantage of the opportunities presented to the country. He addressed shareholders at the company’s 76th Annual General Meeting in New Delhi.

“The most important of these (gaps) is job growth. The Indian unemployment rate hovers around 7-8%, according to CMIE (Centre for Monitoring Indian Economy). This is because job growth has not kept pace with the growth of GDP. Only 40% of the workforce able to work is actually employed or looking for work. The biggest victims are young people and women.”

The country’s unemployment rate fell to 6.8% in July, its lowest level in six months, amid increasing farming activity during the monsoon, according to the latest CMIE data.

“With one of the largest youth populations in the world, it’s easy to imagine social unrest could arise if jobs don’t grow with the youth population,” said the Mahindra group’s chairman.

“The government is trying to do its part and has (also) announced plans to hire one million people for government jobs by 2023. As the country has 900 million employees, there is still a lot more to do,” Mahindra said. .

According to him, what happens in the private sector is mainly at the bottom of the gig economy, which is not “enough”.

“To create massive jobs and take advantage of the global factors that work in our favor, we need to boost manufacturing. Even more important than large conglomerates are SMEs that can benefit from the trend towards localization of manufacturing and the use of technology to scale to create,” Mahindra said.

Mahindra said in the US that 90 percent of new businesses are mom-and-pop stores and while their investment may not be huge, they create 67 percent of new jobs in the country.

“In India too, MSMEs together can be a backbone for growth. While inflation is a concern, from a business point of view it can nevertheless set a minimum threshold for return on productive assets,” he claimed.

(With input from the agency)

Leave a Comment

Your email address will not be published.