In a recent address, former RBI governor Raghuram Rajan emphasized the pivotal role of India’s economic evolution, urging a shift towards moving up the services value chain instead of a predominant focus on manufacturing. Rajan articulated his vision for propelling India into what he termed as ‘Amrit Kaal’—a phase of prosperity and sustained growth.
Rajan argued that while manufacturing has been a cornerstone of economic development, the global landscape is undergoing a transformative shift towards services and technology-driven sectors. By strategically positioning itself in these domains, India can capitalize on emerging opportunities and secure a competitive edge in the international arena.
Source:- ndtv
Highlighting the changing dynamics of the global economy, Rajan stressed the need for India to adapt to the Fourth Industrial Revolution, characterized by digitalization, automation, and artificial intelligence. He asserted that a robust services sector, encompassing IT, finance, healthcare, and other knowledge-intensive industries, would be instrumental in driving India’s economic resurgence.
The former RBI governor acknowledged the significance of manufacturing but cautioned against over-reliance on it as the primary driver of economic growth. Instead, he advocated for a diversified approach, leveraging the strengths of India’s skilled workforce and fostering innovation to propel the services sector forward.
Rajan’s vision aligns with the evolving trends in global trade and technology, where value addition increasingly stems from intellectual capital and innovation. By nurturing a knowledge-based economy, India can position itself as a hub for cutting-edge services, attracting investments and fostering sustainable development.
To achieve this transition, Rajan underscored the need for targeted policy initiatives, investments in education and skill development, and a conducive regulatory environment. He called for fostering an ecosystem that nurtures entrepreneurship and innovation, paving the way for the creation of high-value services that can compete globally.
In conclusion, Raghuram Rajan’s call for India to focus on moving up the services value chain reflects a strategic vision aimed at navigating the complexities of the contemporary global economy. Embracing the Fourth Industrial Revolution and fostering a knowledge-based economy could pave the way for India to enter an ‘Amrit Kaal’—a phase characterized by sustained economic growth, innovation, and global competitiveness.
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