India will cut 7.2 million jobs over the next three months as it seeks to stem the impact of the country’s massive fiscal deficit and slowing economic growth.
The country’s largest private lender said Monday that it expects the government to take steps to reduce the fiscal deficit to 4.2 percent of gross domestic product (GDP) in November from 4.6 percent in September and 4.9 percent in August.
The government said on Friday it was taking steps to trim the deficit to 3.7 percent of GDP from 4 percent.
It’s the latest blow to the Indian economy, which has shed more than 40,000 manufacturing jobs in the past three months and has not returned to growth since early last year.
The government expects to create 1.4 million new jobs over this year and 2.1 million in 2019, according to government data.