Despite the fast pace of GDP growth, India is not being able to produce the required numbers of jobs for the people, Raghuram Rajan SAID.
Despite the fast pace of GDP growth, India is not being able to produce the required numbers of jobs for the people, Raghuram Rajan told ET Now. Even though it’s good for the economy to grow at a rate above 7, there are various challenges underlying the growth, former RBI Governor also said on the sidelines of ongoing World Economic Forum (WEF) 2019 in Davos.
Indian growth is mainly consumption-fed which doesn’t add on to the jobs in the country, he also said, adding India needs to create more jobs otherwise all the growth will be for nothing. Rajan also said that India needs to focus on macro stability as it move towards more job creation.
News agency PTI reported Rajan as saying that the consumers are benefitting in a big way from the business of scale with several services in the new technology age coming for free or very cheap. However, it needs to be seen whether this can continue going ahead, he added.
He also said that the people benefit tremendously from business of scale, there are benefits of efficiency at large corporations and consumers are gaining in a big way from low prices.
Meanwhile, for its latest global risk report, the World Economic Forum conducted a survey to assess people’s perception of global risk factors and challenges, and find out the issues that plague modern times. The survey found nine major economic risk factors that the global citizens are worried about.