The stark reality

The Economic Survey projected a robustness to the Indian economy, but it concealed upheavals occurring in its underbelly. More than 90 per cent of the Indian work force — the informal sector — is forced to live in penury, especially after the tsunami of demonetisation and the hastily-rolled out GST that ruined their micro enterprises. They are jobless and starving. While the survey captures every aspect of the formal economy, it has scornfully ignored the informal sector, the provider of millions of Indians. The government statisticians would often blame the lack of authentic data behind their inability to map the life of the informal sector, but such excuses are untenable in a government that can collect biometric Aadhaar data of its citizens with an iron hand.  

 Days before the survey, an International Labour Organisation report had unemployment rising in India. According to the report, the number of jobless is expected to increase to 18.6 million this year. The rising unemployment would further aggravate the alarming inequality that prevails in the Indian society.  A recent Oxfam report said the richest 1 per cent Indians cornered almost three-fourth wealth generated in the entire country last year. 

Discounting this stark reality, the survey places job creation as a “medium-term” goal. It also maintains a deafening silence over the issue of distributive justice, something enshrined in the Constitution. Job creation is an immediate requirement and that can happen by encouraging labour-intensive industries. The global economy is expanding rapidly at 3.9 per cent this year. This offers an excellent exports opportunity, provided the government helps Indian manufacturers to beat their Chinese counterparts in terms of both quality and pricing. But, the survey’s contention that “private investment and exports” are the “only two truly sustainable” growth engines is myopic. The disruptions caused by demonetisation and the GST cannot be compensated by merely relying on private investments. Private entrepreneurs invest to make profit and not to create jobs. The government has to make huge public investments to bring the economy, particularly the informal sector, back on the track.