Modi faces sluggish job creation; opposition's criticism increases

Mumbai

INDIAN Prime Minister Narendra Modi has a jobs problem. He swept to power three years ago promising India's poor and middle classes that he would restore their "dignity" after years of swelling inequality, with job creation central to his pitch. But now, the jobs market has been slugged by last November's shock cash ban and July's imposition of a goods and services tax.

And things look like they are about to get worse: India is set to see a further 30-40 per cent reduction of jobs in the manufacturing sector compared with last year, according to TeamLease Services Ltd, one of the country's biggest recruitment firms.