Need to develop proper matrix to understand changes in economy: Minister

 

Commerce and Industry Minister Suresh Prabhu has underlined a need to develop a proper matrix to understand changes in the Indian economy and job creation that is happening at a rapid pace.

The minister's comments have come against the backdrop of former RBI Governor Raghuram Rajan recently raising doubts over the Indian economy growing at 7 per cent when not enough jobs were being created.

In response, Prabhu said: "We have to have proper matrix to be developed to understand this changing profile of India's economy and in which job creation is happening at rapid rate."

He said that the relation between employment generation to GDP (Gross Domestic Product) will always undergo a change depending upon the profile of the economy.

Despite the fact that only 16 per cent of the GDP comes from agriculture, the sector engages over 60 per cent of the country's population, he said, adding that "so, what is the relation between GDP and job creation?"

Further, Prabhu said that in 1960s and 1970s, the government used to provide bulk of the jobs and then came the private sector.

He added that now start-ups too are providing huge job opportunities but the challenge is to capture that data.