Stock market indices won't create a single job, contribute to GDP growth, says Pranab Mukherjee

Cuttack: Former President Pranab Mukherjee on Tuesday termed the recent upward trends witnessed in stock markets in the country as mere financial transactions by some blue chip companies and said these trends have very little impact on gross domestic product (GDP) growth.

Whatever little impact these indices will contribute to the GDP growth, they will not create a single job, Mukherjee said while delivering a talk organised by Ravenshaw University Development Trust here.

"We are not for growth in terms of numerical statistics. But growth for creating wealth and having the possession of that wealth at the hands of the people," he said and emphasised on having a growth which will generate jobs, create income and wealth at the hands of the people.

Mukherjee, who had been union finance minister for a substantial period, said India during last 10 years had witnessed GDP growth rate at more than 8 percent but there has been stagnation recently.

"Probably, we will overcome the current stagnation and we will have a growth rate at seven to seven and a half percent," he said.

Raising a fundamental question as to what type of growth India needs, the former President said the unemployment situation in the country should be reflected in our policy formulation in the coming years, which will ensure real growth.

He said the policies should ensure that we can not only have steady and substantial growth, but at the same time, growth must create a condition which will enhance the income of the people at large.