‘Young India Embraces Virat Kohli Mentality – Unrivaled Globally’: Raghuram Rajan

In a conference at George Washington University, former RBI governor Rajan criticized India’s handling of its democratic dividend, stating that the country was not reaping its benefits. He expressed concern that India’s 6% growth is below the levels seen in China and Korea during their demographic dividend period. Rajan emphasized the need to create jobs by enhancing people’s capabilities and changing the nature of available jobs. Rajan also mentioned the need to focus on job creation, questioning the wisdom of India’s large investment in chip manufacturing while neglecting job-intensive sectors like leather.

He urged for a closer examination of the issues in these areas and to rectify the problems. Addressing the trend of Indian innovators going abroad to set up in places like Singapore or Silicon Valley, Rajan highlighted the importance of addressing the factors that compel them to leave India. He stressed the need to foster a conducive environment for entrepreneurs and cited the desire of many entrepreneurs to expand globally and make a positive impact. Rajan later touched on the persistent challenges in India’s labor market, pointing out high unemployment numbers, disguised unemployment, low labor force participation, especially among women, and a growing share of jobs in agriculture.

He underscored the mismatch between the massive labor force that is unemployed and the increasing capital intensity of manufacturing. The former RBI governor concluded his remarks by highlighting the prevalence of highly educated individuals applying for low-skilled government jobs, indicating a mismatch in the job market.