But on the flip side, analysts point out that the increasing FDI may not necessarily lead to the creation of more jobs. In a recent report, the Organisation for Economic Co-operation and Development said India’s rate of employment has declined, with job creation failing to keep up with the growing working-age population. Theoretically, FDI has a direct and indirect impact on job creation. For starters, a factor that decides whether there will be meaningful job creation is the type of industry that is attracting FDI. With this surge in FDI, India may beat its peers in terms of attracting foreign funds, but translating this investment into large-scale job creation is still some time away.

Source: Mint March 28, 2017 02:15 UTC