New Delhi, Feb 21 (Calcutta Tube) Stimulus packages offered by the government during the recession helped generating additional employment with 19 percent growth during October-January in the ongoing fiscal, according to a study conducted by the Associated Chambers of Commerce and Industry of India (Assocham).
The study titled ‘Impact of fiscal stimulus in job creation’, said domestic employment fell drastically following the economic slowdown worldwide in October 2008 which led to a fall in the manufacturing sector as well as exports. The government had offered fiscal stimulus in three phases from December 2008 at 3.5 percent of the GDP – Rs. 1.86 trillion (Rs.186,000 crore) besides tax concessions to industry of more than Rs.42,000 cr.
The stimulus package offered by other countries and other international agencies during the crisis period also helped in reviving imports and exports and helped revive international trade with India, it added.
‘This, in turn, created jobs in manufacturing and merchandising sectors, which recorded 60 per cent and 38 percent growth respectively during October-January this fiscal over the period when the crisis was at its peak,’ the study said.
Sectors which generated additional employment included advertising and event management. Sectors like research and consultancy services helped generating 65 percent additional employment October-January 2009-10 over the same period last year, the study said.
Also sectors like automobiles showed robust signs of recovery with over 24 percent growth in jobs during October-January during the current fiscal compared to the similar period last year.
Similarly, other sectors like hospitality, aviation, hotels and tourism registered a 19 percent growth in jobs, while employment was up by 40 percent in infrastructure sector.
Employment grew by 27 percent in insurance and financial services and also grew in sectors like telecom, gems and jewellery, engineering goods and computer hardware, media & entertainment and warehousing.
However, growth of employment in sectors like banking fell 7 percent. Sectors like agriculture, FMCG, IT and textile sectors also registered negative growth in employment generation, according to the study.