Tamil Nadu adds more new entry level jobs despite slowdown in auto sector

International News
Despite a slowdown in the automobile sector, which has led to production cuts in factories in and around Chennai, Tamil Nadu has added new jobs, in the 18-21 years category, and has emerged as the second largest generator of employment after Karnataka.
During the year 2018-19, Karnataka ranked first in new payroll addition with 265,827 people coming under the ambit of EPFO, as compared to 260,699 people from Tamil Nadu. Maharashtra continued to see the largest net new payroll addition in this period. Maharashtra saw a net new payroll addition of 531,060 in 2018-19 and the number stood at 2,44,166 in the April to July, 2019, period.
According to data released by the Employees' Provident Fund Organisation (EPFO) in September, 2019, net new payroll addition, in the age group of 18 to 21 years, in Tamil Nadu during July, 2019, was 44,311. During the period from April to July, the total net new payroll addition was 150,835, compared to 127,731 net payroll addition in Karnataka during the same period.
A senior official of the state government said that since Tamil Nadu was the second largest economy in the country and number one in terms of number of factories and workers, the growth in terms of new employment creation was on expected lines.

 "In 2019, we have seen a slew of investments coming in. Out of the many Memoranda of Understanding (MoUs) signed during the Global Investors Meet, foundation stones of around 37 projects have been laid and work on these projects has begun. In the micro, small and medium enterprises (MSME) space, around 2,300 units have started production. A lot of investment has also come in apart from that committed under the MoUs. There has been an increase in terms of investment and growth," said the official....READ MORE

Auto dealers unsure of a revival in consumer sentiment in festive season

Current Affairs

India’s real or inflation-adjusted gross domestic product (GDP) grew at 5 per cent in the June 2019 quarter of financial year 2019-20 (Q1FY20), the slowest growth in six years (25 quarters). In nominal terms, the growth stood at 7.99 per cent, lowest since December 2002.
With this, fears of the slowdown being a more structural one than a cyclical one have surfaced.
What is a cyclical slowdown?
A cyclical slowdown is a period of lean economic activity that occurs at regular intervals. Such slowdowns last over the short-to-medium term, and are based on the changes in the business cycle.
Generally, interim fiscal and monetary measures, temporary recapitalisation of credit markets, and need-based regulatory changes are required to revive the economy.
What is a structural slowdown?
A structural slowdown, on the other hand, is a more deep-rooted phenomenon that occurs due to a one-off shift from an existing paradigm. The changes, which last over a long-term, are driven by disruptive technologies, changing demographics, and/or change in consumer behaviour.
Dissecting India’s slowdown

 A slowdown in consumption demand, decline in manufacturing, inability of the Insolvency and Bankruptcy Code (IBC) to resolve cases in a time-bound manner, and rising global trade tension...Read More

Anil Ambani's Reliance Naval risks insolvency as banks say no to debt plan

Current Affairs

There is no change in Pakistan's nuclear policy, the Foreign Office has said, hours after Prime Minister Imran Khan vowed that his country will never ever start a war with India, amid escalating tensions between the nuclear powers over the Kashmir issue.
Addressing a gathering of the Sikh community at the Governor's House in Lahore on Monday evening, Khan said both India and Pakistan are nuclear-armed countries and if tension escalates, the world will face danger.
"There will be no first from our side ever," he said, without explaining further.
However, Khan has been repeatedly threatening the possibility of a nuclear war with India over Kashmir after his efforts to internationalise the matter failed to gain any traction.
Khan also said conflict create more problems than resolving them.
"I want to tell India that war is not a solution to any problem. The winner in war is also a loser. War gives birth to host of other issues," he said.
However, Pakistan Foreign Office said Khan's comments were being taken out of context and did not represent a change in Islamabad's nuclear policy.
"Prime Minister's comments on Pakistan's approach towards conflict between two nuclear armed states are being taken out of context," Foreign Office spokesperson Mohammad Faisal said in a late night tweet on Monday.

 "While conflict should not take place between two nuclear states, there's no change in Pakistan's nuclear policy," he said...Read More