Unemployment Rate In India Rises To The Highest In 4 Months In Feb: CMIE

In February, India's unemployment rate rose to 7.78 percent, the highest since October 2019, according to data released by the Centre for Monitoring Indian Economy (CMIE) on Monday.

In January, the unemployment rate in the country stood at 7.16 percent.

This comes two days after the official government release of GDP (gross domestic product) growth data for the last three months of 2019 showed that the economy grew at a six-year low of 4.7 percent. The economic slowdown threatens to continue as analysts are forecasting further deceleration amid global coronavirus outbreak and high inflation.

Data released by CMIE, a Mumbai-based private think-tank showed that the unemployment rate in rural areas increased to 7.37 percent in February from 5.97 percent in the previous month. However, in urban areas, it fell from 9.70 percent to 8.65 percent.

India's GDP growth of 4.7 percent for the third quarter of the financial year 2019-20 was in line with economists' expectations but the uncertainty of the economic impact of coronavirus has increased the chances of GDP growth for the whole year to fall below 5 percent.

India has direct trade links with China and Hong Kong, posing risks of supply chain disruptions and lower external demand.

The economy's growth will potentially depend on the duration and extent of spread of the epidemic within China and other parts of the world.