Increase in GDP will automatically lead to creation of jobs, hopes Jaitley

NewsBharati    27-Dec-2018
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New Delhi, December 27: The Indian Finance Minister Arun Jaitley uttered around improvement in the GDP, it leading to automatic creation of jobs according to him. In an exclusive interview to All India Radio, Jaitley called for a need to formalise job data for the informal sector. On the issue of GST, Jaitley said that the challenge in meeting the stiff goods and services tax collection target was mostly from services sector rather than the manufacturing sector.
 
“We are not satisfied with 75% or 7.5% rate of GDP. We would definitely like to cross 8% and 9%. Once we cross the 8% barriers, the economy starts moving, it starts reflecting in the way of life citing the better job goals. I do believe that when the economy expands continuously, even at 7.5%, there is bound to be job creation.”, said Arun Jaitley in an interview to AIR.
 
“We must also keep in mind that India makes generality about more job goals, taking place. There is no authentic data, although we need to have it. In the absence of the data, we don’t capture about the activities in the informal sector. Peeping at the informal sector, it is the largest employer industry.”, he added further.
 
In the 18th month of GST, the target which we’ve set for the states is least. Several consumers states, North East in particular have achieved that target. Several manufacturing states have either achieved it or are very close to achieving it. And the others are struggling yet to achieve that.
 
Creating jobs and incomes is crucial for development. Most developing countries struggle with high unemployment or underemployment. Many people can barely live from what they earn. This is why creating new jobs, but also improving incomes and working conditions for existing jobs, is hugely important.
 
Over the years in India, the contribution of employment has declined and that of productivity increased in the growth of GDP, so that during the last decade 80% of growth was accounted for by productivity increase and only 20% by employment growth . This being a positive insight by Jaitley, the new employment generated along, has to be at increasing levels of productivity in order eradicating and overcoming the poverty generating nature.