Here are a few quotes from Raghuram Rajan, new governor of the Reserve Bank of India, praised by the corporates as the new Messiah.

Counter Currents

Here are a few quotes from Raghuram Rajan, new governor of the Reserve Bank of India, praised by the corporates as the new Messiah. 

In an interview given to The New York Times Mr Rajan explains his definition of growth and provides his solution to the ailing economy :

In terms of where will growth come from, it doesn't need to come from fancy stuff like extraordinary innovation of one kind or another. Just getting people from agriculture into services and industry itself is growth.

I think India's medium-term future is moving people out of agriculture into industry and services. Services, you know, some extent we have a sort of a sense of what it takes. And India's service sector is disproportionately large for a country of its income. Where we have had less success is industry, and the question is can we sort of find a way to free the path for small and medium industry, and not just keep them forever as small and medium industries but allow them to grow into large industries.

In another interview given to The Economic Times he extrapolates it further :

There is a tremendous amount of value-add that can be created in services. In India, especially, financial services as also IT and others are where most value-add is created. Unfortunately, even though services account for 60% of the GDP, they don't account for nearly as much for jobs. They account for just 15% of the jobs. What we need to focus on is perhaps thinking broadly about how we create services that will generate many more jobs.

Highlighting sectoral disparities building up in the economy, Rajan said in another interview to The Hindu Business Line that while agriculture's share was declining, that of services had gone up. Manufacturing had remained flat.

"This is not surprising. As countries grow, agriculture declines. What is special about India is that the exit of people from agriculture has not kept pace. (no you're not delusional; read again)

Increasingly, people in agriculture are impoverished relative to those having jobs in industry or service.

We managed to move the States together, but perhaps we need to do more on the sectoral side to move people out of agriculture into other areas

Read more... 

Raghuram Rajan And Other Pied Pipers Of The New World Order
By Shelley Kasli

http://www.countercurrents.org/kasli110913.htm

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