Dr Raghuram Rajan visited the Reserve Bank of India's economics research institute (IGIDR, Bombay) yesterday and talked about his new book Breaking The Mould: Reimagining India's Economic Future.
The historical process of development/modernisation has been from agriculture to manufacturing to services. That is how Europe, America and East Asia have developed. But India missed the manufacturing stage - and the consensus opinion is that we must correct this mistake. The current government is trying to do this [example: the Production Linked Incentives (PLI) scheme].
Dr Raghuram Rajan challenges this conventional wisdom, arguing that we are trying to play the 20th century game - instead of playing the 21st century game. He argues that manufacturing is a thing of the past and that the future lies in services. And to win this 21st century services game, we have to fundamentally reform our systems - most importantly our education system.
One may or may not agree with everything that Dr Raghuram Rajan says - but he is definitely a very intelligent, knowledgeable and thought-provoking economist . . .
The historical process of development/modernisation has been from agriculture to manufacturing to services. That is how Europe, America and East Asia have developed. But India missed the manufacturing stage - and the consensus opinion is that we must correct this mistake. The current government is trying to do this [example: the Production Linked Incentives (PLI) scheme].
Dr Raghuram Rajan challenges this conventional wisdom, arguing that we are trying to play the 20th century game - instead of playing the 21st century game. He argues that manufacturing is a thing of the past and that the future lies in services. And to win this 21st century services game, we have to fundamentally reform our systems - most importantly our education system.
One may or may not agree with everything that Dr Raghuram Rajan says - but he is definitely a very intelligent, knowledgeable and thought-provoking economist . . .
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