TIL Desk/Business/New Delhi/ The International Monetary Fund (IMF) has said that India’s high growth rate in recent years did not lead to a matching increase in formal sector jobs and labour market participation has declined.
The IMF’s report on its annual consultations with India released in Washington on Monday said that while India has lifted millions out of poverty as one of the world’s fastest-growing economies, “recent labour market data suggests that unemployment is high while labour force participation has decreased, particularly for females.”
“Without more inclusive and sustainable growth, India’s potential demographic dividend over the next few decades, from its young and rapidly-growing labour force, could be wasted,” the report warned. The report pinned the slowing growth of the Indian economy on the deceleration of consumption and investment that was made worse by regulatory uncertainty. It said the relatively low food prices contributed to “rural distress”.
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