Budget 2024: Do India's Job Opportunities Face Quality Concerns Amid Rapid Inflation?

Business
Jan 24 2024 02:04 PM
P C Thomas

BUDGET 2024: A critical aspect seems to be missing from India's job growth story as the country grapples with its budget for 2024. The latest survey highlights a significant gap in job quality, raising questions about the Modi government's effectiveness in creating desirable employment opportunities. While there is acknowledgment that jobs are being generated, a substantial 47.5% of respondents express dissatisfaction with the quality of these opportunities.

The prevailing sentiment suggests that the government's efforts in job creation lack the necessary focus on ensuring high-quality employment. This concern prompts an exploration into which sectors are falling short in providing quality jobs. Are traditional sectors like agriculture and manufacturing struggling to meet these expectations, or do even newer sectors like IT and services face similar challenges?

The report delves into the issue of skills mismatch, questioning whether the existing workforce is adequately prepared for the jobs being created. Is there a noticeable gap between the education and training provided and the demands of the evolving industries? These crucial questions underscore the need for a closer examination of the dynamics between job creation and the quality of employment opportunities in the country.

Despite these concerns, India is anticipated to maintain its status as the fastest-growing major economy in the coming year. A recent Reuters poll of economists suggests that the country's robust economic growth will be sustained by continued government spending. The government's emphasis on building infrastructure has been a key driver, outpacing private investment and job creation. This trend signals that New Delhi will continue to wield a significant influence on India's economic growth.

The survey, conducted from January 10-23, predicts a 6.9% growth in the fiscal year, a slight improvement from the previous estimate of 6.7% in December. Looking ahead, the economy is expected to expand by 6.3% in the next fiscal year, maintaining the same forecast as the previous poll.

While inflation experienced a spike, reaching its fastest pace in four months at 5.69% in December, economists foresee a decline in the near future. The surge in inflation is attributed to pressures from rising food prices, but experts believe this trend will subside.

Consumer spending, constituting 60% of Asia's third-largest economy, has witnessed a slowdown. Despite this, a notable majority of economists—25 out of 28—remain optimistic about improvements in employment over the next six months. This positive outlook hints at a potential turnaround in the job market, offering hope amid concerns about the overall quality of employment opportunities in India.