The Aryavarth Express
Agency(New Delhi): Speaking at a conference titled “Making India an Advanced Economy by 2047: What Will it Take” at George Washington University, former Reserve Bank of India Governor Raghuram Rajan expressed concerns about India’s failure to fully benefit from its demographic dividend. Rajan underscored the importance of enhancing human capital and creating more jobs to address this issue effectively.
According to Rajan, while India is currently experiencing a demographic dividend, it is not achieving growth rates comparable to those seen in China and Korea during similar phases. He pointed out that the official 6% growth rate might be inflated and suggested that the actual figure is lower. “We are being overly complacent,” he remarked, highlighting the need for substantial job creation and skill enhancement to reverse this trend.
Rajan criticized the Indian government’s heavy investment in sectors like chip manufacturing, which he sees as less labor-intensive compared to areas like leather production, which are currently declining but historically have been more job-rich. He emphasized the need for a balanced approach to subsidy allocation and industrial support.
Furthermore, he discussed the trend of Indian innovators relocating to places like Singapore or Silicon Valley, driven by better market access and business environments. This diaspora, he noted, is keen on making a global impact but finds more opportunities abroad than at home.
The conference also touched on broader issues of unemployment, low labor force participation, especially among women, and the inappropriate job skills of many Indian graduates. Rajan’s insights call for a critical reevaluation of India’s economic strategies and labor policies to ensure robust growth and utilization of its young workforce.