## Raghuram Rajan on India's Innovation and Job Challenges
Former Reserve Bank of India (RBI) governor Raghuram Rajan expressed concern about the exodus of Indian innovators to Singapore and Silicon Valley. He attributes this trend to easier access to final markets in these locations.
Rajan emphasized the need to understand the factors driving these entrepreneurs to seek opportunities outside India. He highlighted their desire to make a global impact, a sentiment he described as a "Virat Kohli mentality" – a striving for excellence on the world stage.
However, Rajan cautioned against complacency with India's current growth rate. He believes the 6% growth figure is misleading, as it fails to account for the underutilized potential of the demographic dividend. He stressed the need to focus on improving human capital and skill sets to truly capitalize on this advantage.
Rajan advocated for apprenticeship programs, as proposed by the Congress party, to enhance the capabilities of the workforce. He also acknowledged the importance of job creation, particularly in labor-intensive sectors like leather, which have been experiencing decline.
He criticized the government's focus on subsidizing chip manufacturing, arguing that it neglects other crucial areas with higher job creation potential. He urged policymakers to address the underlying issues hindering growth in these sectors.
Rajan concluded by highlighting the severity of India's unemployment problem, encompassing high unemployment rates, disguised unemployment, low labor force participation, and a concerningly low female labor force participation rate. He emphasized the need for comprehensive solutions to address these challenges and unlock India's true economic potential.