Job losses which occurred during pandemic will be recovered within 6-9 months: Principal Economic Advisor
Jan 31, 2022
New Delhi [India], February 1 : If all goes well and we don't face any more disruption due to pandemic, then India will recover job losses suffered during the pandemic within 6 to 9 months, said Sanjeev Sanyal, Principal Economic Advisor to Government of India.
In an exclusive interview with ANI, Sanyal said, "It is difficult to give numbers. I don't have any forecast with me right now but in my personal capacity I can say that if economic growth momentum continues at this pace then within 6 to 9 months India will recover job losses which occurred due to pandemic."
"However, this doesn't mean that it will resolve the problem of unemployment, but the job losses that occurred in the country due to COVID-19 will be recovered in 6 to 9 months if economic activity continues," he said.
"There is no fear of any job loss or salary cuts as witnessed during the period of lockdowns. The situation is improving. I believe that if there is growth, there will be jobs. The impact has been much severe on contact-based services such as tourism, retail trade, hotel, entertainment and recreation. The last two years were the worst for this sector. Although the overall sector first contracted by 8.4 per cent in 2020-21, it is then estimated to grow by 8.2 per cent in 2021-22.
Further, discussing Inflation in the country, Sanyal said that inflation has reappeared as a global issue in both advanced and emerging economies.
"India's Consumer Price Index inflation stood at 5.6 per cent Year on Year basis in December 2021 which is within the targeted tolerance band. Wholesale price inflation, however, has been running in double-digits. Although this is partly due to base effects that will even out, India does need to be wary of imported inflation, especially from elevated global energy prices," he said.
Backing his assessment by GST data, Sanyal said "Government has received Rs 1.38 lakh crore GST collection in January. GST collection crossed Rs 1.30 lakh crore mark for the fourth time. This shows that GDP growth has been staging a sustained recovery."
