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.
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.