Govt says lay-offs could be a reality

Planning Commission Dy Chairman Montek Singh Ahluwalia says the number of jobs in the country will not go down even if the economy grows at 7% or less, but contraction of jobs is possible in some sectors.

Amid fears of large-scale lay-offs by companies in the wake of economc upheaval, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Tuesday said the number of jobs in the country will not go down even if the economic growth is 7 per cent or less than that.

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"For economy as a whole, including agriculture sector, I don't believe that the total number of jobs will go down even if GDP growth is at 7 per cent or less than 7 per cent," Ahluwalia said at India Economic Summit in New Delhi.

However, he said, it was quite possible that in some sectors of industry, which were badly affected, there could be some contraction of jobs.

Meanwhile, talking to CNN-IBN, Union Labour Minister Oscar Fernandes on Tuesday said that India's economy is under pressure and there will be layoffs.

“I would not like any layoffs but reality is reality. If there is no demand for things one produces and there is no market, he has to lay-off,” Oscar said to the TV channel.