Unemployment high, informal sector in shambles: Dr Manmohan Singh

Former Prime Minister Dr Manmohan Singh has criticized the government for the high unemployment in the country. He said the informal sector is in shambles because of the ill-considered demonetization decision taken by the BJP-led government in 2016.

Inaugurating a development summit, which was virtually organized b the Rajiv Gandhi Institute of Development Studies, Singh said temporary measures by the government and the RBI to paper over the credit problem cannot blind the nation to the looming credit crisis ahead that could affect the small and medium sector. “Unemployment is high and the informal sector is in shambles, a crisis precipitated by the ill considered demonetization decision taken in 2016,” he said.

Singh highlighted that in Kerala and in many other states, public finances are in disarray with states having to resort to excessive borrowing, which creates an intolerable burden on future budgets. “Federalism and regular consultation with states, which was the cornerstone of India’s economic and political philosophy as enshrined in the constitution, no longer finds favour with the present Central government,” he said.

In regards to Kerala, Singh said there are many roadblocks ahead that the state have to overcome. “The global downturn of the last two or three years, aggravated by the pandemic, has made the global interface of Kerala more fragile. While the increased use of digital modes of work may keep the IT sector afloat, tourism has been hit badly and the rate at which the pandemic is galloping in Kerala poses challenge for this industry.”

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The senior Congress leader noted that the focus on health and education has enabled Kerala to take advantage of job opportunities in India as well as all parts of the world. Singh said this has led to a growing stream of remittances from abroad which created a booming real estate sector and sharp growth of the services sector, led by tourism and information technology.