Raghuram Rajan On Unemployment: Other opposition parties including Congress are attacking the Modi government at the Center regarding unemployment. Meanwhile, former Governor of Reserve Bank of India (RBI) Raghuram Rajan has responded to the problem of lack of jobs.
Raghuram Rajan said in a discussion on ‘Making India an advanced economy by 2047: What will be required for this’ at George Washington University in Washington that we have a problem of lack of jobs.
Rajan has been critical of India spending billions of dollars on chip manufacturing. “Think about these chip factories,” he said. Subsidies worth billions of dollars will be given on chip manufacturing.
“We are going down in those areas,” he said. No wonder we have a problem of lack of jobs. It did not arise in the last 10 years but has been increasing for the last few decades. However if you ignore the areas that can be enhanced. I am not saying that we need to subsidize the leather sector now, but find out what is going wrong there and try to improve it.
What did Raghuram Rajan say?
Raghuram Rajan said on Tuesday that India is not taking advantage of the demographic dividend. “I think we are in the middle of it (demographic dividend), but the problem is that we are not taking advantage of it,” he said.
“That’s why I said… six percent increase,” he said. If you think that this is the situation we are in now, then remove the distortion from the GDP data. That six percent is only in the demographic dividend. This is much lower than where China and Korea were when they achieved their demographic dividend. ,
Responding to a question, Rajan said that many Indian innovators are now moving to Singapore or Silicon Valley because they find it easier to access end markets there.
Meanwhile, Arun Kumar, managing partner of Celesta Capital, who was present at the event, said, “India is getting the benefits of globalization. Its economic prosperity will be driven by its global interdependence to increase trade and investment in and from India, which will help in job creation, GDP growth and prosperity. Today, global supply chain conditions work in India’s favor for increased participation in manufacturing.
“There is a need for continued focus on building trade facilitation, ease of doing business, modern infrastructure and related logistics to facilitate greater participation in global value chains,” he said.
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