Economics

Indian Budget Falls Short on One of Modi's Key Promises

  • Unemployment will be a key issue in upcoming national polls
  • Data delays, revisions undermine credibility of stats office
A worker welds the chassis of a mass rapid transport (MRT) passenger car at the Alstom SA manufacturing facility in Sri City, Andhra Pradesh, India.Photographer: Udit Kulshrestha/Bloomberg
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India’s budget provided plenty of giveaways to farmers and middle-class voters, but was short on detail on one of Prime Minister Narendra Modi’s key promises: creating jobs.

The issue has become a politically sensitive one ahead of elections due by May, with the government accused of deliberately withholding the most recent labor report because of the possible bad news it presents. A local newspaper published leaked detailsBloomberg Terminal of the report a day before the budget, showing the unemployment rate reached a four-decade high of 6.1 percent in the year to June 2018.