Congress president Rahul Gandhi on Monday slammed PM Narendra Modi citing Nobel laureate Paul Krugman’s remarks on India’s rising unemployment issue. Tagging a news report, in which Krugman’s was reported as criticising India’s dismal performance in job creation, Gandhi said India’s prime minister continues to live in denial. “The Nobel prize winning economist, Paul Krugman confirms what we’ve been saying for over two years now. Mass unemployment is the biggest threat India faces. Unfortunately, we have a PM who lives in denial. Afraid his”Acche Din” PR will take a beating,” Gandhi said.
Krugman, who won a Nobel Prize in 2008, recently warned that creation of employment and jobs is utmost important to sustain projected growth. The American economist cited lack of manufacturing sector could work against employment creation. “India’s lack in the manufacturing sector could work against it, as it doesn’t have the jobs essential to sustain the projected growth in demography,” he said.
Krugman also spoke about issues of corruption that the country has been facing. “There are issues of corruption. You cannot become Denmark with Chinese levels of corruption,” he added.
Krugman stressed that India should focus on manufacturing sector. Citing examples of China and Japan, Krugman said that Tokyo is no longer a superpower because its working-age population declined, and Beijing is looking the same. “In Asia, India could take the lead but only if it also develops its manufacturing sector, not only the services one,” he said at the event organised by Network 18 group.
In his adresss, Krugman indicated that India’s story would have been taken with much seriousness on the global stage if there was no China around. “If China wasn’t around, we would have said what an incredible story India is,” Krugman said, adding the country has achieved extraordinary progress as reflected in quadrupling of GDP per capita in a very short time.