Nilanjan Banik & Khanindra Chandra Das
The Wire
June 20, 2017
Data
reveals that a substantial portion of India’s FDI inflows comes from
foreign investors claiming bigger stakes in Indian start-ups and
brownfield ventures across various sectors. What does this mean for job
creation?
A
potential candidate, interviewing for a position on the faculty of
economics at a prominent university, was recently asked a curious
question. With India’s GDP growth, gross fixed capital formation and
index of industrial production (IIP) all having slumped of late, why has our country remained a sweet spot for foreign direct investment (FDI)?
After all, basic macroeconomics tell us that if GDP growth is slowing down,
a lesser number of jobs will be created, which will, in turn, be
followed by a slowdown in demand. GDP growth in January-March 2016-17 was 6.1% (lower
than the provisional figure of 7%) and the fall in gross value added
growth was even sharper at 5.6%. The consequent fall in demand is seen
to a certain extent in our IIP numbers (a metric by which factory output
is measured), which slowed down to 3.1% in April 2017 from 6.5% last year. All the constituents of IIP – manufacturing, mining and power – slowed down.
Please read this article at:
- - - - - - - - - - - - - - - - - - - - -
CUTS E-GROUP FORUMS
FunCompForum for news and views on Economic Policy & Governance Issues in India
CompetitiOnlineForum for International Competition, Investment and Regulation news and views
CUTSTradeForum for International Trade & Development news and views
CUTS-SouthAsia to discuss Trade and Economic (including Competition and Investment and Regulations) issues and challenges in South Asia
CUTSConsumersUp for Consumer Empowerment in India to take the consumer movement forward
CUTSGovForum to discuss news and views on Governance issues and challenges in India
No comments:
Post a Comment