Modi creates two cabinet committees to focus on jobs, economic-growth
Prime Minister Narendra Modi has finally addressed the elephant in the room. On Wednesday, he formed two Cabinet committees to look into job creation and slow economic growth- two issues which his government is facing in its second term. Both committees will be chaired by him. The committees could have an impact on the budget, which will be presented on July 5. Here's more.
PM Modi constituted an A-team to tackle problems
The committee on Investment and Growth, which will suggest measures to bolster economic growth, has four members apart from PM Modi. These include Cabinet ministers Amit Shah, Nirmala Sitharaman, Nitin Gadkari, and Piyush Goyal. The second committee called Cabinet Committee on Employment and Skill Development will have ten members, including PM Modi. Shah, Sitharaman, and Goyal are part of the second committee too.
Take a look at other members of second committee
Other members of the second committee are Narendra Singh Tomar, Ramesh Pokhriyal 'Nishank', Dharmendra Pradhan, Mahendra Nath Pandey, Santosh Kumar Gangwar, and Hardeep Singh Puri. A notification regarding the committees is expected soon.
Unemployment skyrocketed from 2017 to 2018, showed government data
The unemployment crisis is staring at PM Modi's government with dead eyes. Official data which was released on May 31, days after general elections wrapped up, showed enough jobs weren't created. From July 2017-June 2018, the unemployment rate soared to 6.1%, confirmed data of Periodic Labor Force Survey (PLFS). The fact that the unemployment rate increased among educated workers raised concerns.
India's GDP also touched a new low last quarter
Separately, official data recorded the country's GDP at 5.8% in the last quarter of 2018-19. GDP touched a 20-quarter low and this could bring down full-year growth estimate to 6.8% when the country was aiming for 7%. Economist Dr. Pronab Sen said, "How effective [are the two committees], would depend on how they are able to understand the problem and take effective measures."
Before elections, BJP made promises about improving the economy
As far as the economy was concerned, BJP had made tall promises in its manifesto for 2019 general elections. The saffron party assured to make India a $5 trillion economy by 2025 and promised capital investment of Rs. 100 trillion in the infrastructure sector by 2024. Easy loans to MSME sector under the 'credit guarantee scheme' was also promised.
Notably, Shah is a member of all cabinets
While the focus will remain on the two aforementioned committees, PM Modi also reconstituted six other committees namely- Appointments Committee of the Cabinet, Cabinet Committee on Accommodation, Cabinet Committee on Economic Affairs, Cabinet Committee on Parliamentary Affairs, Cabinet Committee on Political Affairs, and Cabinet Committee on Security. Notably, Shah is a common factor in all committees, cementing his position as No. 2 in Centre.
Shah will head Cabinet on parliamentary affairs and accommodation
Shah, who was made the Union Home Minister, will head Cabinet Committee on Parliamentary Affairs and Cabinet Committee on Accommodation. The Appointments Committee of Cabinet (ACC) will be headed by PM Modi and it has Shah as the second member. PM Modi will also head the Cabinet Committee on Political Affairs, which helps the government take important policy decisions.
