India’s unemployment rate decreased to 5.2% in July from 5.6% in June, according to the statistics ministry. This improvement is attributed to increased rural hiring before the festival season and heightened agricultural activities.
In rural regions, the jobless rate for individuals aged 15 and above dropped to 4.4% from 4.9% in June. Conversely, urban unemployment rose slightly to 7.2% from 7.1%, the data revealed.
For urban youth aged 15 to 29, unemployment climbed to 19.0% in July from 18.8% in June. Meanwhile, rural youth unemployment decreased to 13% from 13.8% the previous month, following a 13.7% rate in May.
The overall unemployment rate for those 15 and older was estimated at 5.4% for the April-June quarter, marking the first quarter of the current fiscal year, as reported by the ministry.
In response to trade tensions with the United States, India’s federal government announced plans to reduce the goods and services tax by October, aiming to boost local manufacturing and job support.
The Labour Force Participation Rate (LFPR), which measures the share of people aged 15 and older who are employed, seeking employment, or available for work, increased to 54.9% in July from 54.2% in June, according to the ministry.
On Thursday, SP Global Ratings upgraded India’s long-term sovereign credit rating to ‘BBB’ from ‘BBB-‘, marking the first upgrade in 18 years. This decision reflects strong economic growth, credible monetary policy, and ongoing fiscal consolidation.
India’s real GDP growth averaged 8.8% between fiscal 2022 and 2024, the highest in the Asia-Pacific region, with a projected annual growth rate of 6.8% over the next three years.
