Balance between government and private sector employment needed: Shamika Ravi

PM-EAC Member Shamika Ravi shared insights on various critical issues in an exclusive interview with Firstpost during the recent Raisina Dialogue in New Delhi

Shamika Ravi, member of the Economic Advisory Council (EAC) to the Prime Minister, shared insights on various critical issues in an exclusive interview with Firstpost during the recent Raisina Dialogue in New Delhi. Her conversation was around the manufacturing vs. services debate, unemployment, and the impact of Production Linked Incentive (PLI) schemes.

Ravi dismissed the notion that India had missed the manufacturing bus, emphasising the strategic importance of manufacturing in the global economy. She highlighted the growing demand for simple manufactured items worldwide and the need for India to capitalise on this opportunity. Ravi also stressed the importance of providing the workforce with the necessary skills to succeed in manufacturing.

Regarding PLI schemes, Ravi acknowledged their potential but emphasised the need for comprehensive evaluations to gauge their impact on job creation, import substitution, and firm growth. She also noted the global trend of countries adopting protectionist industrial policies, emphasising the strategic importance of manufacturing.

On the topic of unemployment, Ravi argued that the issue was not a shortage of jobs but a shortage of the "right job" for individuals. She highlighted the disparity between the unemployment rates of highly educated youths and those with primary education, highlighting the importance of skill development and reskilling initiatives like Skill India and the New Education Policy (NEP).

Ravi also addressed the cultural preference for government jobs, noting that while it was a shrinking problem, it still posed challenges. She said there is a need for a balance between government and private sector employment and highlighted the importance of risk-taking in a growing economy.

"You have a segment that is only waiting for government jobs, but you also have people who are willing to try new things. And I think a growing economy needs risk-taking appetite," she said.

In conclusion, Ravi provided a nuanced perspective on various economic and policy issues, emphasising the need for strategic thinking, skill development, and a balanced approach to job creation and economic growth.