Jobs: Slowing Manufacturing Sector Could Lead To Mass Unemployment In India
Nobel Laureate Paul Krugman has warned the country of dire consequences of slowing down manufacturing sector, leading to falling growth numbers and mass unemployment
Commending India for its growth story, American economist and Nobel Laureate Paul Krugman however has warned the country of dire consequences of slowing down manufacturing sector, leading to falling growth numbers and mass unemployment.
Addressing a media event in New Delhi on Saturday, Paul Krugman said, “India achieved as much economic progress in the (last) 30 years as the Great Britain did in 150 years. It is a very swift space of transformation, but why does there still seem to be visible poverty in India?"
India regained the tag of world’s fastest growing economy in Q3 of the current financial year with the GDP poised to grow at 7.2 percent, beating estimates which were in the range of 6.5 to 6.9 percent.
However, highlighting the concerns, Paul added, “Lack of manufacturing could be a major hurdle as India doesn't have the jobs." According to Paul, another concern for the Indian economic growth is the high inequality in economy during the growth phase resulting into uneven distribution of wealth across the country.
Applauding India’s growth and working capital ‘tremendous’, he said, “Japan is no longer a superpower because its working-age population declined, and China is looking the same. In Asia, India could take the lead but only if it also develops its manufacturing sector, not only the services one.”
He also observed saying, "I am on the Centre-Left, but I do not think the government should have a heavy hand on economy. India used to have Licence Raj, where bureaucratic obstacles were immense and that has not gone away completely but enormously reduced. India has improved a lot on ease of business doing and easier place to work will bring in more business. The PM said India moved from 148 to 100 in the rankings. That is not a badge of distinction, but it is better than it was.”