India needs 8-8.5% growth to create enough jobs: Former RBI Guv Raghuram Rajan

Hey everyone! 👋 Today, I want to share my thoughts on some interesting insights about jobs in India. So, Raghuram Rajan(Former Governor of the Reserve Bank of India), recently shared some cool observations about how our country can create more jobs. Let me break it down for you!

Why Do We Need More Jobs?

First things first, we have a lot of young people in India who are ready to work. But here's the catch - our economy needs to grow faster, around 8 to 8.5 percent, to make enough jobs for everyone. Right now, it's growing at 6 to 6.5 percent, which is good, but not good enough for all of us job seekers.

In my opinion, it's pretty interesting to note that Mr Rajan said we need to make a whopping 70 million new jobs in the next 10 years. That's a huge number! If our growth is 7.5 percent, we'd only be solving two-thirds of this job puzzle. Yikes! And guess what? The unemployment rate in October hit 10.05 percent, the highest in over two years. Imagine the number of people looking for jobs!

In my view, our Prime Minister, Mr Narendra Modi, is also worried about this. He's up for re-election next year, and people want solutions to this job issue. His team promised one million government jobs by the end of this year, so they are hustling to make it happen.

I believe we need to train our workforce better. We want to compete with countries like China and Vietnam in making things. While we're doing well with some iPhone parts, making complete phones in India is still a dream down the road.

Now, zooming out a bit, in my perspective, it's interesting that India is getting back on its feet after the pandemic. However, there's a bit of worry about the US economy. There's more than a 50 percent chance it might slow down too much, and that could affect us too.

on a positive note, in my opinion, our growth is fuelled by the government spending more on building stuff, cleaning up financial messes, and the upper middle class buying more things. But interestingly, I find that China is way ahead of us in making fancy computer chips. We've got some catching up to do!

So, to sum up, from my perspective, we need to speed up our economic engine to create more jobs. The government is making moves, but it's a big challenge. Let's keep an eye on how things unfold, and fingers crossed for more jobs for all of us!

What do you think about these insights? 🤔 Let's chat about it!