The merger of SBI with associates had resulted in restructuring of the workforce.
Business
Standard : Growth momentum in India may turn out to be a
“jobless growth scenario” in the next 3 years, if the
manufacturing sector fails to pick up, said brokerage house Kotak
Securities.
The
merger of SBI with associates had resulted in restructuring of the
workforce, but such fears have been allayed among other public sector
firms in banking and insurance sector. In a reply to Lok Sabha last
December, Pon Radhakrishnan, Minister of State for Finance, had
said the services sector had contributed 53.9 per cent to the
country’s gross value added at current prices, during FY18.
The
manufacturing sector, on the other hand, accounted for 16.7 per cent
of the GVA.
The
brokerage firm said the government needs to attract foreign direct
investment in manufacturing to make India a global hub, and that the
move may entail improvement in ease of doing business along with land
and labour laws in the country.
“The
trade war between the US and China presents India with a huge
opportunity to develop its manufacturing vertical. The global
situation might bring the markets down, but it’s an opportunity at
the same time,” he said.
Rao
feels the government needs to act on reforms in the next two fiscal
quarters to keep growth momentum in the country, as well as the
bourses, going.
He
opined that the IBC resolution process needs to be fastened and steps
needs to be taken to solve the liquidity situation of non-banking
financial companies. Increase in financialisation and conversion of
savings into investments have also been suggested by Kotak
Securities.
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