Slowing Growth and Rising Unemployment Cloud India's Economic Outlook
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Manufacturing and services activity slowed in October, with PMI dropping to 7-month and 8-month lows respectively. Indicates low production and job creation.
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Unemployment rate rose to 10% in October per CMIE data, despite PLFS data showing 6-year low unemployment of 3.2%. Quality of jobs remains a concern.
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Self-employment is increasing, potentially due to lack of good salaried jobs.
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Air pollution impacts GDP growth via reduced worker productivity, lower consumption, increased health costs. Concerns key sectors like agriculture, construction.
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Combined effect of these 4 factors may limit India's projected 6.5% GDP growth target for 2023-24.