Abstain from speculations, give exact job loss count, Finance Ministry tells India Inc

There were also reports that the auto sector has seen 3 lakh crore jobs being lost.

Published: 22nd August 2019 08:50 AM  |   Last Updated: 22nd August 2019 08:50 AM   |  A+A-

Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman

Express News Service

NEW DELHI: TAKING notice of daily reports on job losses, the Union Finance Ministry has asked business chambers and industries to produce the exact number of job cuts to derive the correct picture of the economy. It has asked the industries to abstain from causing panic.

“There are a number of reports that talk of job losses, and mostly come through reports. This is creating panic. The ministry has asked the businesses to give the exact job loss figures so that the government can assess the actual state of the economy. Businesses should,” a senior finance ministry official told TNIE.

The reaction came following media reports saying biscuit company Parle G is planning to sack 10,000 people, owing to slowdown. Also, much to the dismay of the government, the Northern India Textile Mills Association (NITMA), an association of textile mills in north India, advertised in leading business dailies on Wednesday that 3 crore jobs in the sector is under threat.

“Indian spinning industry is facing the biggest crisis, resulting in huge job losses,” read an advertisement. It went on to say that the textiles industry is facing the worst financial crisis and slowdown, which has forced spinning companies to cut down production and shut down their mills. The industry is staring at huge job cuts, unseen in last 10 years, claimed an apex body representing the industry.

According to NITMA, apart from the excess spinning capacity, poor demand for India yarn from overseas markets has led to the crisis.  It also blamed “high interest rates” and “state and Central taxes on export” for worsening the crisis.

The Indian textile industry provides employment to roughly 10 crore people directly and indirectly and accounts for 2 per cent of the GDP.

There were also reports that the auto sector has seen 3 lakh crore jobs being lost.

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