Raghuram Rajan said – The current rate of economic growth is insufficient to generate adequate employment.

Raghuram Rajan on Employment: At the rate at which the Indian economy is growing at present, it is not possible to create adequate number of jobs. The country with the largest population in the world has to achieve economic growth at the rate of 8 to 8.5 percent annually to create ample employment opportunities. This is said by Raghuram Rajan, former Governor of Reserve Bank of India.

Youth need employment.

In his address via video link in the Chinese capital Beijing, Raghuram Rajan said that India needs to grow at a rate of 8 to 8.5 percent to meet the needs of the country’s population and employment aspirations. According to a Bloomberg report, the current economic growth rate of 6 to 6.5 percent looks better than other countries. But economic growth is slow to match the number of jobs we need. Raghuram Rajan said that our country has a large population of youth who need employment.

India has to become a manufacturing power.

The former RBI governor said it is crucial for India to better prepare its workforce to compete with manufacturing powers like China and Vietnam. Referring to iPhone production in India, he said that India is engaged in improving the value chain and the results are visible. But India still has a long way to go in terms of fully developing mobile handsets. He said that China’s innovation in chip manufacturing is the best in which India is far behind.

The government increased spending on infrastructure.

Raghuram Rajan said that we are recovering from the pandemic and India’s economy is showing signs of steady growth. He said the government is now spending more on infrastructure, with banks cleaning up their balance sheets and growth accelerating due to better demand from the upper middle class.

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