India’s development strategy should be multidimensional: C. Rangarajan

“India’s strategy should be multi-dimensional. Growth may be stimulated by raising investment rate, emphasising manufacturing, services and exports, absorbing new technologies and promoting a mix of sectors that is employment friendly. But, job creation is going to be th toughest challenge ahead,” said C. Rangarajan, former Governor of Reserve Bank of India.

“India’s strategy should be multi-dimensional. Growth may be stimulated by raising investment rate, emphasising manufacturing, services and exports, absorbing new technologies and promoting a mix of sectors that is employment friendly. But, job creation is going to be th toughest challenge ahead,” said C. Rangarajan, former Governor of Reserve Bank of India.

In his convocation address at the first annual convocation of the Dr. B.R. Ambedkar School of Economics University, Bengaluru, on Wednesday, he said in light of recent developments at home and abroad, there needs to be a clear road map for India’s growth. “The expectations of the people are very clear; we want to become a developed country by 2047 - that is when India completes 100 years after independence,” he said.

“Analysts are considering redesigning industrial policy in the light of ongoing global developments. Post World War II, many of the east Asian countries adopted an export-led growth strategy and made rapid progress. Subsequently, China adopted a similar policy. China’s share in world export was 0.6% in 1970. By 2022, equity will be distant dream. On the other hand, without equity, growth cannot be sustained. Equity also requires an emphasis on health and education as part of public expenditure in terms both of quantum and quality,” he explained.

“International financial organisations currently classify countries with per capita income of $13,845 and above as developed countries. In 2047, this level would be higher and as of now, our per capita income is $2,500. This shows the distance we have to travel,” he said, adding that based on some assumptions about the future exchange rate of the rupee and domestic inflation, there needs to be an average annual real rate of growth of 6 to 7% to achieve this level of per capita income.

Thaawarchand Gehlot, Governor, underscored the importance of the role of economists in shaping the nation’s future, stating: “Successful economists study complex data and use their findings to advise financial institutions. Their insights on policies and investments are vital. Our country, the world’s fifth largest economy, is rapidly progressing towards becoming a developed nation.”

A total of 180 students were conferred degrees, including four gold medals and 12 rank certificates. M.C. Sudhakar, Minister for Higher Education, N.R. Bhanumurthy, vice-chancellor, and others were present.