Raghuram Rajan on jobs: Growth rate not sufficient to generate employment; here’s what Modi must do

By: |
Published: January 13, 2020 11:49:30 AM

The present rate of growth is not sufficient to generate enough jobs for the young labour force and brisk reforms are needed to boost the slowing economy, former RBI governor Raghuram Rajan said.

India, growth, recession, extreme centralisation, PMO, Raghuram Rajan, economy newsBack in December 2019 too, Raghuram Rajan had said that the Indian economy is not creating enough jobs and that there is no improvement in India’s fiscal situation in the last five years.

The present rate of growth is not sufficient to generate enough jobs for the young labour force and brisk reforms are needed to boost the slowing economy, former RBI governor Raghuram Rajan told CNBC International in an interview. The current GDP growth rate is not job-oriented and insufficient for the country to become an attractive investment destination, Raghuram Rajan added. “The problem in the last 15 years or so, is the reform momentum has slowed considerably,” he noted. Adding, the professor of finance at the University of Chicago Booth School of Business said that considering the movement of Chinese supply chains to Vietnam, India has to do a lot more to get its share of the pie.

Back in December 2019 too, Raghuram Rajan had said that the Indian economy is not creating enough jobs and that there is no improvement in India’s fiscal situation in the last five years. A lot more needs to be done on the macro stability and fiscal deficit front by the Modi government, he added. In Q2FY20, the economy recorded a dismal 4.5 per cent growth rate on account of both global and domestic factors. Even the first advance GDP estimate said that the economy is expected to grow at 5 per cent growth rate in FY20. The economy is not expected to see a recovery anytime soon, according to the data.

Also read: Market LIVE: Nifty hits fresh record in early trade; bank credit growth slumps to 2-year low

Meanwhile, in a recent LinkedIn post, Raghuram Rajan condemned the attack on students and teachers at JNU saying that such attacks add weight to the claims that the Indian government is suppressing the citizens.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1PM-Awas Yojna: Only a third of sanctioned units completed so far, state-wise numbers here
2FCI may face serious storage problem in a few weeks, here’s why
3India is in talks with Mongolia and Russia for importing coking coal: Dharmendra Pradhan