India must create 8.1 million jobs annually to maintain employment rate

Indian Economy To Grow 7.3% This Year Says World Bank

Indian Economy To Grow 7.3% This Year Says World Bank

Further, the apex worldwide financial institution forecasted a rate of growth of 7.5 percent for 2019 and 2020.

The report also said that India has recovered from the withdrawal of large denomination bank notes in November 2016 and the goods and services tax (GST) that was rolled out on July 1, 2017.

"Various interventions in soil and water management will improve the availability and reliability of water sources for drinking, empower communities to make the best use of their natural resources and accelerate economic growth and well-being of every community in Meghalaya", said Hisham Abdo, World Bank's acting country director in India.

The bank's biannual South Asia Economic Focus report suggested growth is expected to pick up to 6.9% this year and 7.1% next year.

"Every month, the working age increases by 1.3 million people and India must create 8.1 million jobs a year to maintain its employment rate, which has been declining based on employment data analysed from 2005 to 2015, largely due to women leaving the job market", it said.

It also said the region could extend its economic lead over East Asia and the Pacific.

Much of the progress, however, is driven by India's growth rebound and is not consistent across countries.

Sri Lanka faces several challenges that increasingly put its future economic growth and stability at risk, which must be addressed through macro and structural reforms, the World Bank said.

In this edition of the SAEF titled "Jobless Growth?", the World Bank also said South Asia has regained its lead as the fastest growing region in the world supported by recovery in India.

The outlook remains favourable, provided the government is committed to the reform agenda of improving competitiveness, governance and public financial management, the report added.

External risks include disappointing growth in key countries that generate foreign exchange inflows to Sri Lanka: exports, tourism, remittances, FDI, and other financing flows. According to them the Modi government that has entered its last year of the current 5-year term and elections are scheduled next year, need to take drastic measures on the employment front as inadequate job creation has led to simmering discontent among youth.