India's Job Crisis Amid 7% Economic Growth: Raghuram Rajan's Insights

Former RBI Governor Raghuram Rajan highlighted that despite India's 7% economic growth, job creation remains inadequate. He urged the government to promote labour-intensive industries to bridge this gap. Rajan also emphasized the need for careful fiscal policies and collaboration between richer and poorer states for balanced economic growth.

Raghuram Rajan, former Governor of the Reserve Bank of India, has raised concerns over India's inability to generate sufficient jobs despite a 7% economic growth rate. He suggested that the focus should shift to promoting labour-intensive industries to tackle unemployment.

Rajan pointed out that while the upper levels of Indian society are thriving, consumption growth among the lower half of the population has yet to return to pre-pandemic levels. He noted this as a significant challenge for the country.

In his remarks, Rajan also compared India's situation to Vietnam and Bangladesh, both of which are excelling in labour-intensive sectors like textiles and leather. He stressed the importance of seizing the demographic dividend window and suggested monitoring and expanding successful apprenticeship schemes.

(With inputs from agencies.)