Thursday, March 04, 2004
Jobless Growth in India0 Comments:
- Economist’s survey of India points out:
- Nasscom’s forecast for 2008 is that the IT industry will directly employ 2 million people, up from about 770,000 now, and create another 2 mn jobs indirectly. 2 mn jobs are no more than a drop in India’s 470 mn labor pool, joined each year by more than 9 mn new entrants.
- In China, economic reform and growth led to millions of people leaving the land to work in factories. In India, growth has been largely jobless. Industry has become more competitive and productive, but without taking on huge numbers of people. Most Indians work on the land, or what is euphemistically called ‘the unorganized service sector’.
Dragon Powers Rising Sun
BusinessWeek (Mar 1, 04) describes how China’s strong growth is helping to power Japan’s turnaround:
- Trade: Exports to China helped boost Japan’s current account surplus by 11% in 2003, to $150 billion
- Inflation: Chinese demand for steel and raw materials has pushed up producer prices for the first time since 2000
- Industrial Production: Grew by 3.6% last quarter due in part to China-bound exports of machinery
- Investment: Thanks to China-fueled growth, foreigners last year poured $77 bn into Japanese stocks, the highest levels since 1981.
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