Former Reserve Bank of India (RBI) Governor Raghuram
Former Reserve Bank of India (RBI) Governor Raghuram Rajan has said that with seven per cent economic growth, India is not creating enough jobs. This can be measured by the number of applicants for vacant positions in some states. He suggested that the government should focus on promoting labor-intensive industries to generate employment.
Rajan gave this advice to the government.
Rajan was asked whether the Indian economy, which is growing at seven per cent, is generating enough employment. He said capital-intensive industries are growing faster, but the same is not true for labor-intensive industries. Let us tell you that capital intensive industries are those industries that require a large amount of capital. This creates a lot of employment.
The former RBI governor said all is not well at the lower level. I think there is an urgent need for employment. And you can see it. Forget the official figures. Rajan, a finance professor at the US-based Chicago Booth, said this can be seen in the number of applications for government jobs, which is very high.
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Rajan became a fan of this plan of the Modi government.
He said the Indian economy will grow at a rate of six to seven per cent in the medium term. Rajan welcomed the apprenticeship schemes announced by the Finance Minister in this year’s Budget, but added that we need to look very closely, see what works and scale it up further.
Finance Minister Nirmala Sitharaman had announced in the budget for fiscal year 2024-25 that the government will launch three employment-related schemes based on enrollment in the Employees’ Provident Fund Organization (EPFO). Citing the example of Vietnam and Bangladesh, which are doing well in labor-intensive industries like textiles and leather, Rajan said we need to look at this (labor-intensive industries) very, very carefully, We can’t stay out.
Rajan said this about the interest rate.
Rajan said the important thing is that India has a short time of 15 years to harness the demographic dividend and should not miss this opportunity. On the reduction in interest rate by the Federal Reserve, the US central bank, Rajan said that the Federal Reserve has reduced the interest rate by 0.50 per cent. This has given central banks the ability to proceed in any way they deem appropriate.
