By: Himanshu Gulati
India Manufacturing Purchasing Managers’ Index *(PMI) fell below 50 in December, 2016. It has not crossed the mark of 55 since 2012. Currently, it is around 54. Indian Industrial Production stands at 8.10 % currently. It has not crossed the 10% mark since 2011. It was above 15% in 2010.
Contrary to the promise of 1 crore jobs , a total number of 1.35 lakh jobs in 2015 & 2.31 lakh jobs in 2016 have been created in 8 labour-intensive manufacturing sectors as compared to 4.21 lakh jobs in 2014. According to the report published by Centre for Monitoring Indian Economy, an independent think tank, nearly 1.1 crore jobs were lost in 2018 alone and the unemployment is at highest point since 1973, according to National Sample Survey Organisation (NSSO) report.
It must be mentioned that there have been serious questions raised about how the government is obfuscating jobs related numbers. One such example has been explained by Quint here. Relevant parts produced below:
“Consider this, an organisation with 20 employees or more needs to register for PF contribution, and so if a workplace that had 19 employees till 1 April 2016, and has inducted one employee later, will count all the 20 employees as ‘beneficiaries’, with the government bragging about 20 new jobs. However, only one new job has been created in that organisation.”
Given the increasing rate of unemployment, now reaching highest point in 45 years, and job losses, the performance against this promise is considered “Broken”
(*The Purchasing Managers’ Index (PMI) is an indicator of the economic health of the manufacturing sector. The PMI is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment)