India's economic growth on track, but a 'jobless' one': Raghuram Rajan

Former RBI governor Raghuram Rajan

The former RBI governor Raghuram Rajan said in a recent interview that the India's economic growth is a jobless one. Rajan had recently made a comment in Raipur that the Indian economy is not only on track but also running at a fast pace.

The former RBI governor said in an interview to NDTV that a lot of this growth is 'jobless growth'. “Jobs are essentially Task One for the economy. We don’t need everybody to be a software programmer or consultant but we need decent jobs,'' Rajan told the news channel.

Also Read: Without reforms, India will grow too slowly for its own good, says Raghuram Rajan

The top economist has cautioned in the past that India is failing its youngsters by not building capacities to educate them, forcing them to go abroad for courses such as medicine.

He has also said that India should focus on services instead of blindly following the China model of manufacturing-led growth. These services, such as that of good doctors, can then be sold abroad.

India’s growth figure is better compared to other nations. However, the country still needs more growth due to its vast population, according to Rajan.

No shortcuts can lead to creation of jobs for everyone in India, he added. “We have to increase the skill base and education of our people. If we can create the skill base, the jobs will come,'' he said.

Rajan warned India is less of a liberal democracy now than it was 10 years ago – and that can have consequences. The current BJP-led government has a view that only those who constantly clap are right as it does nothing wrong, according to him.

Also Read: Strengthening liberal democracy is essential for growth, says Raghuram Rajan

“Every government does wrong,” he said. “I have criticised the UPA government when I was not part of the establishment and I have worked with the previous NDA government.” Rajan added that he has no reason to be partial and some criticism is warranted.

On July 30, the leading economist said that India’s future lies in strengthening liberal democracy and its institutions as it is essential for achieving economic growth. Warning against majoritarianism, he said Sri Lanka was an example of what happens when a country’s politicians try to deflect a job crisis by targeting minorities.