India’s GDP numbers for the fourth quarter and full year of
2016-17 were released a few days ago. India’s economic growth has slowed down sharply,
driven primarily by the notebandi announcement of November 2016. Gross Value Added
(GVA), a true submeasure of economic activity, has also experienced a steep and
sustained fall. Private sector investment has collapsed and the economy is
running on just one engine of public spending. The GVA growth of industry has
fallen from 10.7% in March 2016 to just 3.8% in March 2017, a decline of nearly
seven percentage points of growth.
The most worrisome aspect of all this is the impact on job creation.
Jobs have been extremely hard to come by for the youth of the nation. The
construction industry which is one of the largest employment generators in the
country has suffered a contraction. This implies loss of millions of jobs for
the nation’s workplace.