Back'India’s growth path lies in liberal democracy…': Raghuram Rajan
Former Reserve Bank of India governor Raghuram Rajan stressed that India has the potential to take a leadership role in the services industry and strengthening the country's liberal democratic values was an economic necessity to earn the world's trust in this endeavor.
PremiumFormer Reserve Bank of India governor Raghuram Rajan said that the country's growth path lies in leveraging its intrinsic strengths and becoming crucial to global supply chains by building on its historic culture of tolerance and respect for all, according to the news agency PTI.
He also stressed that India has the potential to take a leadership role in the services industry and strengthening the country's liberal democratic values was an economic necessity to earn the world's trust in this endeavor.
The leading economist, with reference to competing with a cheap manufacturing neighbor like China, said that India would benefit from focussing on the service component of manufacturing or services more directly as a trusted global supplier.
“Our independent judiciary, our liberal democracy, these are critical advantages if we are to go down this manufacturing service-led growth path because this will enable us to earn the world's trust; it's intrinsically necessary," said Rajan in his keynote address at the 'Ideas for India' conference.
“We want democracy as Indians but we also want democracy to be able to convince the world that we can be trusted, that we can be effective providers of these kinds of services… we need to do our homework in strengthening our institutions, in strengthening our democracy," he said as quoted by PTI.
“When you provide consulting services, you need to convince the other place that you're not sort of getting backdoor entries to their firms, finding out what they're doing, and then use that to either get an advantage or blackmail them.
"For that you have to convince them that you are bound by the rule of law… for that we need to strengthen our democracy, our checks and balances, our data protection law. It’s in our economic interest and competitive advantage relative to Chinese and Vietnamese and Russian firms," Rajan added.
(With PTI inputs)
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
