Modi Government Created Record 10 Million Jobs Over Last 7-8 Years, 'Jobless Growth' In UPA Era: Economist Surjit Bhalla

Former Executive Director for India at the IMF, Surjit Bhalla, claimed on Sunday (5 May) that the Narendra Modi government has created an unprecedented number of jobs, averaging about 10 million over the past 7-8 years.

Bhalla stated that the lowest number of jobs were created during the period of the UPA government (2004-2013), which led to the term 'jobless growth' being coined as per a report by The Economist Times.

He emphasised that job creation under the Modi government has been the highest on record in Indian history. Bhalla attributed the maximum job creation to the tenures of Atal Bihari Vajpayee and Narendra Modi.

Regarding a recent report by the International Labour Organisation (ILO), which indicated that in 2022, nearly 83 per cent of India's total unemployed population comprised youths, Bhalla noted that for the majority of the workforce aged above 29, the unemployment rate has been around 1 per cent, which he considered to be very low.

Bhalla also addressed the issue of foreign direct investment (FDI) in India, suggesting that a significant reason for the decline in FDI could be the government's new policy, which requires investment disputes to be settled in India. He expressed hope that the new government, likely to be led by the BJP, would reconsider this policy.

In terms of FDI inflows, Bhalla highlighted that while gross FDI inflows slowed marginally last year, net FDI inflows saw a sharp decline.

He pointed out that FDI flows to China have also decreased significantly, with other countries such as the US, Canada, Mexico, Brazil, Poland, and Germany experiencing gains in global share following this decline.

Bhalla also predicted that the BJP is likely to secure between 330-350 seats on its own in the upcoming Lok Sabha polls, based on statistical possibilities. The polls, conducted in seven phases, began on 19 April, with the counting of votes scheduled for 4 June.