Government Rebuts Assocham's Grim Job Loss Prediction
The government has strongly refuted a forecast by industry chamber Assocham, which warned that approximately 25% to 30% of employees in key sectors could lose their jobs within the next ten days. This stern dismissal came from Finance Minister P Chidambaram, who emphasized the resilience of India's economy.
A Contrasting View
- Government's Stance: According to Minister Chidambaram, the economy is actually poised for growth, contrary to Assocham's dire predictions. He highlighted that the pace of job creation might slow down but insisted that jobs are not being destroyed.
- Cross-Chamber Disagreement: Interestingly, another prominent industry chamber, FICCI, has also contradicted Assocham's study. This disagreement underscores the complexity of economic forecasting.
Sectors in Question
Assocham's report specifically mentioned the following sectors as being at high risk of job losses:
- Aviation
- Information Technology (IT)
- Steel
- Financial Services
- Real Estate
- Cement
- Construction
Economic Growth and Job Creation
Minister Chidambaram further bolstered his argument by pointing to the projected 7% growth rate, which, he noted, would still result in more job creation than was achieved during the entire NDA regime, when the growth rate was 5.8%.
Impact of Global Economic Slowdown
When queried about the implications of the slowing US economy on India, the Minister acknowledged an indirect impact due to global output slowdown. However, he reassured that India's economy, driven by domestic consumption and investment, would be less affected compared to export-driven economies like China.
Key Quotes
- “The pace of job creation may slow down but that doesn’t mean that jobs are being destroyed.” - P Chidambaram, Finance Minister
- “Why this question was not raised when the economy was growing at 5.3%?” - P Chidambaram, questioning the timing of concerns over job losses