MOSL: Morning India (11/January/18)-1. Economy (Thematic | Employment: Broken Link Or...?)-2. Financials- 3. Capital Goods- 4. Tata Motors; 6. South Indian Bank

MOrning India (11/January/18): 1. Economy (Thematic | Employment: Broken Link Or...?); 2. Financials; 3. Capital Goods; 4. Tata Motors; 6. South Indian Bank

Today’s top research theme

Economy | Thematic: Employment: Broken Link Or...? A study of the relevance of employment in India’s economic growth

We study the relevance of employment in India's economic growth and its political landscape. Our key findings are:

• In stark contrast to established economic literature, we found an inverse, non-positive correlation between employment and consumption/GDP growth in the case of the Indian economy.
  
• Unlike in some developed economies, the employment situation in India has failed to influence any of the four (full-cycle) general elections held since the 1990s.
  
• Notwithstanding volatility in employment growth, the level of consumption inequality has remained remarkably unchanged in India.
  
• Going forward, we estimate that while the economy will need 10.2m jobs per annum until 2030, we could end up creating only 9.1m jobs per annum. In this case, the unemployment rate will rise from 3.5% currently to 5.9% by 2030.
  

Piping hot news

India to be fastest growing economy again in 2018: World Bank

• After conceding its position as the fastest growing major economy to China for a year in 2017, India is likely to reclaim the position in 2018, with growth expected to accelerate to 7.3% in the year, according to the World Bank’s Global Economic Prospects report released on Wednesday.​