Raghuram Rajan - Indian Economy Growth - High Value Added Services - Next Steps
Raghuram Rajan shared his views recently on what he felt India needs to do get out of the middle income trap in the next 30 years, while we still can leverage the demographic dividend to our fullest advantage.
A key highlight he pointed was that apart from emphasizing development manufacturing sector, there needs to be strong development of 'high value added services' to keep the economy growing. While there were some examples provided in the news that shared this, I would love to know what are some examples of high value added services in this context?
One should not listen to Raghuram Rajan. He is heavily biased and anti government all the time. Better find good individuals to look up to.
Sorry, I think you should listen to everyone and draw the conclusion for yourself. There is no one out there who isn't biased, to take a stand is to be biased. But I hear you buddy
Would appreciate if you can share your recommendations on who to follow though
What economists mean is obscure at the best of times, especially a compromised one like RRR.
Best is to ask him what he specifically meant as High Value Add.
We already value added service industries in our country. I don't understand what else high value add above and beyond what we already have
Agreed. There's plenty of that in manufacturing too. Just look at what we're doing with Russian Crude as input and exports to the EU. Semiconductors is another mega area of investment and opportunity. We do that in auto exports too.
Knowing RRRs proclivities he may well have meant the country needs to plan for the monetisation of the Aloo > Sona transmogrification machine.
He wants India to just be a low cost service provider economy. He has stupid ideas don't listen to him
He did give an example of advanced semiconductor processor design. His other examples were of Apple where the high value parts of R&D, Design, Marketing are owned by Apple and everything else is outsourced. I think what Aether/Ola are attempting is similar.
Im the Education sector, we don't have good global universities. India can develop better Univs which are global in nature which can act as a low-cost alternative for Univs in US. We need to have programmes designed on that with student friendly culture. We also Need to boost research programs.
All I can think of Indian universities is some 60yo persistent on keeping "bacho 75%+ attendance lagega 71% ain't enough"
Didn't RRR publicly claim Indian economy won't grow at a pace it has for last decade, he also firmly opinionated hitting the XYZ trillion GDP figure is pipe dream and only some miracle would make it happen.
For me he's lost his credibility, as of the micron plant they're going to make memory chips, innovation is happening in them also.
Services are by design easily shuffled / offloaded physical goods not so much, it's imperative we as country hedge against fully service oriented industry.
Taiwan prints $$ out of playing with what essentially is sand, that capacity can't be immobilized in event of chaos. Case in point software sector flew ukraine onset of war, if it were to be physically anchored to something they might be required to move back.
Out country will never become a big manufacturing companies. we will have a strong manufacturing base with multiple small to cottage size companies. Employment life in our country has no benefits except the one that are well paid. SO, every worker will always aim to go on his own. The problem when everybody wants to have their own business is scale cannot be reached.
The 80' & 90's are the proof. our cities and towns a littered with small shops, We have just have a handful of country level/state level chains. They came up after 2010. The same thing is getting replicated in the startup world. we have multiple startups doing the same thing.
