It’s impossible to make sense of India’s employment situation — or consumer demand — by only looking at the fifth of the labour force that holds regular jobs. The rest are either self-employed or work when they can find it.
About 110 million toil at 65 million tiny nonfarm jobs scattered across the country. Most of the labour comes from family members. But establishments that do hire outside staff paid employees less than 125,000 rupees ($1,500) a year, on average.
The growth in gross domestic product, which at 8%-plus is the fastest among major economies, is clearly not creating enough employment. Surplus Indian labour is stranded in villages, somehow trying to cope with the double whammy of high cost of living and lack of better-paying formal jobs.
Despite weak rural demand, inflation in villages is 5.3%, whereas in cities it’s close to the central bank’s 4% target. Even inflation expectations are higher in villages.
The reality is actually worse that this. What I can see around me, there are many people who are forced to live under $2 a day. The monthly wages for a primary teachers in private schools are hardly going above $50. What else do I tell you?
For those who are living in a world of illusion and calling India a poor country