NEW DELHI: The Indian economy has been recovering from the Covid-19-induced lockdown better than most expectations.
India s year-on-year (y-o-y) real gross domestic product (GDP) contraction in the second quarter was much lower at 7.5 per cent compared to the 23.9 per cent in the first quarter.
While the better-than-expected recovery is real, it is enigmatic. What drove such a dramatic recovery? It was clearly not driven by any government spending or initiative to spur growth. Neither was it driven by any increased investments by the private sector.
While the government announced several schemes, its spending during April-November 2020 was 4.7 per cent higher than it was in the same months of 2019. This is the lowest year-on-year growth in central government spending in the past five years.
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The economic crisis unleashed by the COVID-19 pandemic has impacted the entire world. For an economy like India where fast pace of growth is critical to its poverty alleviation and human development goals, a recessionary phase has been a major setback. Despite all sectors opening up and the economy resuming post lockdown, unemployment continues to be a major concern.
According to the latest data from the Centre for Monitoring Indian Economy (CMIE), the national unemployment rate was at a six month high of 9.06 percent. On the other hand, the rural unemployment rate was also pegged at a high of 9.15 percent.
Spike in search for ‘placement consultancies’ and ‘job training’: study
January 25, 2021
Sulekha.com findings reflect unemployment scenario and the need for employees to upskill themselves ‘Placement consultancies’, ‘Job Training’ and ‘Entrance Exam Coaching’ are the top three education-related service categories that have seen a spike in online searches, according to a recent study conducted by AI-driven tech platform Sulekha.com
The spike in search for placement consultancies and job training reflects the massive unemployment scenario in the country and the increasing need for job seekers and employees to upskill themselves to stay relevant in the narrowing job market.
“According to CMIE (Centre for Monitoring Indian Economy), India’s unemployed count in December rose to 38.7 million. This data is consistent with the education-related service categories that have witnessed an increase in the month of December i.e. placement consultancies and job train
Budget 2021: Rejigging Social Sector Spending Priorities in the Wake of COVID-19
Besides the health sector, which obviously needs to be strengthened, both NREGA and NRLM deserve an allocation boost.
A woman worker in the construction sector. Photo: Reuters/Adnan Abidi
Preparation for the presentation of Union Budget 2021-22 is underway.
Unlike in the past, it is expected that the priorities of this yearâs budget will be different. The pandemic-battered Indian economy is struggling to bring itself back on track due to its falling GDP growth rate, the rise in unemployment and the impact that COVID-19 has left on peopleâs health. While COVID-19, followed by the lockdown, has contracted Indiaâs GDP and revenue, demand for jobs, especially in the rural sector, and a shortage of health infrastructure need greater attention of the government.