New Delhi: Prime Minister Narendra Modi on Wednesday is learned to have constituted two high-powered committees to rein in the slowdown of the economy, investment and loss of jobs in the market.
The five-member Cabinet Committee on Investment and Growth includes Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Road Transport and Highways and MSME Minister Nitin Gadkari and Railway Minister Piyush Goyal.
Another 10-member Cabinet Committee on Employment and Skill Development has been formed which includes Amit Shah, Nirmala Sitharaman, Piyush Goyal, Minister of Agriculture and Farmers Welfare, Rural Development and Panchayat Raj Narendra Singh Tomar, Human Resource Development Minister Ramesh Pokhriyal ‘Nishank’, Petroleum and Natural Gas Minister Dharmendra Pradhan, Minister Skill and Entrepreneurship Mahendra Nath Pandey and Ministers of State Santosh Kumar Gangwar (Labour) and Hardeep Singh Puri (Housing and Urban Affairs).
This step by the Modi government comes in wake of a recent report that pegged India’s unemployment rate at a record 45-year low. The latest data shows that joblessness has indeed touched 6.1 per cent in the 12-month period from July 2017 to June 2018.
The official data showed 7.8 per cent of all employable urban youth as being jobless during the survey period, while the percentage for the rural areas stood 5.3 per cent.
(The unemployment rate is defined as the percentage of persons unemployed among the total the labour force. Nearly 10 million youth join the country’s workforce every year.)
The data poses a huge challenge to the Modi government which has returned to power for the second term on the promise that it will set policies right and ensure faster economic growth and employment.
On the other hand, India’s economy grew at a much-lower-than-expected 5.8% in the January-March period, slowest in the past 17 quarters.
India’s GDP growth has now slipped to 5.8% in Q4 after growing 6.6% in the third quarter, 7% in second and 8% in the first quarter. The below 6 per cent growth of Q4 is the slowest in five years.
The March quarter growth rate is slowest since 2014-15. The previous low was 6.4 per cent in 2013-14. For the fiscal year 2018-19, the growth was 6.8%. The GDP growth fell from 7.2 per cent in the previous fiscal, due to poor performance in agriculture and subdued manufacturing growth.
With inputs from ANI and IANS