GDP growth must yield jobs

The drop in the GDP number to seven per cent in the April-June quarter from 7.5 per cent in the previous January-March quarter has caused some disappointment. But  the picture is not completely dismal. There was stronger growth in agriculture and a marginal 4.9 per cent pick-up in investment. Consumption, the largest contributor to GDP, is beginning to recover. It is a matter of concern that India Inc., which is making the most noise, has shown weak growth and along with services grew 8.8 per cent against 9.1 per cent in the previous quarter. Investment has been coming primarily from the government and if growth is to pick up the government would have to go in for big-ticket investments.

Considering that indirect tax collection has grown significantly, it means that investment, which is primarily government, is slowly but surely paying some dividend. Exports being a drag is understandable because of the global economic crisis, but it is not entirely acceptable as there are several unexplored destinations in Latin America and Africa. India has to take advantage of the lowest oil and commodity prices in five years. In fact, China seems to have more faith in India than India itself as she has said since she is slowing down India could take the leadership in manufacturing. Small enterprises need to use all the schemes available. The government should immediately address the complaints of this sector. GDP growth is meaningful only if it is growth with jobs.