Stock markets in India continue to trade higher as Nifty is hovering around 10,700 and Sensex inching towards 35,000 mark. Sectoral indices are trading in green with stocks in the banking sector and PSU sector witnessing maximum buying interest.
The BSE Sensex is trading up by 237 points (up 0.7%), and the NSE Nifty is trading up by 69 points (up 0.7%). Meanwhile, the BSE Mid Cap index is trading up by 0.7%, while the BSE Small Cap index is trading up by 0.6%. The rupee is trading at 66.83 to the US$.
In the news from the economy. According to the government think-tank NITI Aayog, between September 2017 and February 2018, 3.53 million new jobs were generated.
However, Employees' Provident Fund Organisation (EPFO) data showed that during this six-month period 3.1 million new payroll additions were made across all age groups.
Talking about Pension Fund Regulatory Development Authority (PFRDA) data, NITI Aayog said that the New Pension Scheme (NPS) data indicates generation of 420,000 new payrolls during the given period, that too only from Tier-1 account.
Besides, the NPS currently manages the corpus of around 5 million employees in state and central government.
Highlighting importance of payroll data, the government think-tank stated that India has, for the first time, introduced monthly payroll reporting for the formal sector to facilitate analysis of new and continuing employment, and this data would provide a firmer basis for various analysis and studies of the economy and job creation.
Besides, the EPFO, Employees' State Insurance Corporation (ESIC) and the PFRDA have released payroll data. It added that the numbers from these three organisations are an eye opener and put an end to all speculations and conjectures regarding job creation in the economy. They also strengthen the efforts made by the government on job creation and formalisation of the economy.
Tackling unemployment has remained one of the biggest economic challenges for successive governments.
It is noteworthy that the organised sector covers establishments employing 10 or more persons as identified by the Economic Census (2013-14), and accounts for a share of 1.4% of the 58.5 million establishments.
Out of the 0.4 million jobs created in FY17, a lion's share of 47.4% were in the manufacturing sector. Education and Health showed up as big employment generators having shares of 16.5% and 15.9%, respectively in overall new jobs. However, sectors such as construction and accommodation and restaurant witnessed a decline in employment during the year.
New Jobs Grow at a Snail's Pace
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The redeeming factor was that a majority 87% of the new jobs created were by employers with self-employment constituting only 12.7% of the over 0.4 million jobs added in FY17. But, this is hardly a consolation considering that automation and artificial intelligence are set to curtail a number of traditional jobs. Therefore, unless the government takes adequate steps in skilling the youth on a war footing, the demographic dividend can soon turn into a demographic disaster for India.
Moving on to the news from steel sector. As per an article in a leading financial daily, the Competition Commission of India (CCI) has given its approval to Tata Steel's acquisition of debt-ridden firm Bhushan Steel.
The regulator said it finds no Appreciable Adverse Effect on Competition (AAEC) in respect of proposed acquisition.
Last month, Tata Steel had won the bid to acquire Bhushan Steel under the insolvency process.
Notably, Bhushan Steel had a total debt of Rs 571.6 billion, as on 1 February 2018.
Under the insolvency process, the Committee of Creditors (CoCs) had declared Tata Steel as the successful resolution applicant for Bhushan Steel.
Tata Steel share price was trading up by 1.1% at the time of writing.
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