
In a recent statement, former RBI Governor Raghuram Rajan expressed his concerns about India’s economic growth and highlighted several significant structural problems that need to be addressed. He warned against believing the “hype” surrounding the country’s strong economic performance and emphasized the necessity of fixing these issues for India to reach its true potential.
The Importance of Education and Skilled Workforce
Rajan believes that one of the biggest challenges facing India after the elections is improving the education and skills of its workforce. He argues that without addressing this crucial aspect, India will struggle to fully benefit from its young population and achieve sustained economic growth. Rajan cautioned against succumbing to the hype, stating that India still has a long way to go and many years of hard work ahead to ensure that the hype becomes a reality.
Dismissing the Goal of a Developed Economy
Rajan dismissed Prime Minister Narendra Modi’s goal of developing India’s economy, deeming it “nonsense.” He pointed out that it is unrealistic to talk about achieving such a target when a significant number of children in India do not have access to a high school education and dropout rates remain high. According to Rajan, focusing on education and employability is crucial before discussing lofty economic goals.
Making the Workforce More Employable
Rajan emphasized the need to make India’s growing workforce more employable and to create quality job opportunities. He expressed concern that while India has a large workforce, it can only be considered an asset if it is employed in good jobs. Rajan highlighted this as a possible tragedy that India may face if it fails to address the employability issue. He believes that India needs to put in a lot more work to achieve sustainable 8% growth.
Contrasting Views on India’s Potential Growth
While some financial institutions and foreign investors have expressed optimism about India’s potential growth in the next decade, Rajan’s concerns offer a contrasting perspective. While foreign investors encourage significant investments in India, Rajan raises doubts about the government’s priorities. He criticizes the government’s emphasis on high-profile projects like chip manufacturing, arguing that it detracts from addressing fundamental issues, such as improving the education system.
The Need for Balanced Priorities
Rajan argues that the government’s ambition to become a great nation should not overshadow the essential work required to strengthen the foundation of the economy. He expresses worry that India is becoming overly focused on prestige projects, such as chip manufacturing, while neglecting the underpinnings necessary for a sustainable chip manufacturing industry. Rajan suggests that a balanced approach is necessary, with equal attention given to both high-profile projects and the fundamental aspects that contribute to long-term economic growth.
Final Thoughts
Raghuram Rajan’s concerns about India’s economic growth highlight the need to address critical structural problems, particularly in education and workforce development. While India has achieved impressive growth, Rajan urges caution against falling for the hype and emphasizes the importance of sustained efforts to ensure real progress. He calls for a balanced approach that prioritizes education, employability, and the development of a strong foundation for long-term economic growth.
The govt at the centre has introduced new pattern of curriculum in Sri school 🎒 scheme all over India,the syllabus for various subjects and languages being same in all schools under the scheme.Educational standards are now made in such a way that employability of graduates is at par with the world standards of developed nations
Mr Rajan could give his suggestiond. Already we have IITs, IIMs, Iisc etc of world ranking institutions of higher studies. Our Medical system is also at par with the world standards