Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
»
2-min read

As Unemployment Soars, Govt’s Economic Survey Looks at China Model For Job Creation

The annual survey highlighted how a “virtuous” cycle of savings, investment, exports and growth with investment as the “central driver” will help in job creation.

News18.com

Updated:July 4, 2019, 6:43 PM IST
facebookTwitterskypewhatsapp
Loading...

New Delhi: Sluggish job creation has been India’s biggest concern in the recent years and the latest Economic Survey tabled in the Parliament on Thursday addressed the problem in the very first chapter.

The annual survey highlighted how a “virtuous” cycle of savings, investment, exports and growth with investment as the “central driver” will help in job creation.

“The overwhelming evidence across the globe, especially from China and East Asia in recent times, is that high growth rates have only been sustained by a growth model driven by a virtuous cycle of savings, investment and exports catalysed and supported by a favourable demographic phase,” read the document.

Chief Economic Adviser K V Subramanian’s first economic survey further narrowed down private investment as the “key driver” that drives demand, creates capacity, increases labour productivity, introduces new technology, allows creative destruction, and generates jobs.

Drawing parallels from the Chinese economy, the document shows how high investment makes labour and capital complementary.

“A general apprehension is that high investment rate will substitute labour. This thinking has led to much debate about labour-intensive versus capital-intensive modes of production. However, the Chinese experience illustrates how a country with the highest investment rates also created the most jobs,” read the document.

The survey cites international evidences to conclude that capital and labour are complementary when high investment rate drives growth.

The document also makes a “startling” recognition of the fact that India needs old and large firms over “dwarf” ones to boost jobs.

“Dwarfs, which we define as small firms that never grow beyond their small size, dominate the Indian economy and hold back job creation and productivity. While dwarfs account for half of all the firms in organized manufacturing by number, their share in employment is only 13.3 per cent,” read the eco survey.

In contrast, the survey states, young and large firms (firms that have more than 100 employees and are not more than 10 years old) account for only 6.2 per cent of firms by number but contribute a quarter of the employment.

At the same time, large but old firms (firms that have more than 100 employees and are more than 10 years old) account for only 9.5 per cent of firms by number but contribute half of the employment.

Thus, firms that are able to grow over time to become large are the biggest contributors to employment and productivity in the economy, it said. In contrast, dwarfs that remain small despite becoming older remain the lowest contributors to employment and productivity in the economy.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Infosys 779.35 7.24
Yes Bank 93.20 -1.06
IndusInd Bank 1,475.10 -2.28
Sun Pharma 422.95 3.74
Indiabulls Hsg 638.95 -4.05
Company Price Change %Gain
Infosys 779.45 7.20
Yes Bank 93.20 -1.01
Larsen 1,440.25 -1.84
Indiabulls Hsg 638.30 -4.16
Sun Pharma 422.40 3.61
Top Gainers
Company Price Change %Gain
Infosys 779.35 7.24
Sun Pharma 422.95 3.74
UPL 647.40 2.75
Tech Mahindra 677.90 1.82
Maruti Suzuki 6,079.70 1.81
Company Price Change %Gain
Infosys 779.45 7.20
Sun Pharma 422.40 3.61
Maruti Suzuki 6,079.75 1.81
TCS 2,145.20 1.77
Kotak Mahindra 1,507.75 1.58
Top Losers
Company Price Change %Gain
Indiabulls Hsg 638.95 -4.05
IndusInd Bank 1,475.10 -2.28
Larsen 1,440.60 -1.79
Bharti Airtel 350.60 -1.54
Adani Ports 409.10 -1.49
Company Price Change %Gain
IndusInd Bank 1,474.40 -2.38
Larsen 1,440.25 -1.84
Bharti Airtel 350.70 -1.47
ITC 270.90 -1.47
ICICI Bank 422.40 -1.09

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results