On the latest episode of The State of the Economy Podcast, Nivedita V discusses India’s recent economic performance and its impact on job creation with renowned economist Ashoka Modi. Modi is the Charles and Mary Robertson Visiting Professor of International Economic Policy at the Princeton School of Public and International Affairs at Princeton University.he too European Tragedy: A Play in Nine Acts.
India’s GDP grew by 7.8% in the April-June quarter of 2023-24, lifting some 415 million people out of poverty in just 15 years. However, the challenge of creating enough jobs remains. Modi pointed to historical factors contributing to India’s job creation problems, dating back to Jawaharlal Nehru’s heavy industrialization strategy, which did not create many jobs. Meanwhile, the East Asian nation excels in labor-intensive industries such as textiles and electronics. India’s lack of investment in human capital, especially education and female workforce participation, is holding back its progress.
Modi stressed the importance of mass education, good nutrition and health in creating a skilled workforce. He criticized the focus on digital infrastructure, emphasizing the need for human interaction in education. He called for a system that would produce quality teachers and give them the respect they deserve, similar to what is done in Finland.
For labor-intensive industries, Modi opposed industrial selection and suggested creating conditions conducive to labor-intensive manufacturing. He advocated for a weaker rupee to boost exports, citing the success of East Asian economies in making their currencies attractive to international buyers.
Modi addressed women’s low labor force participation and attributed it to violence in urban areas and the mechanization of agriculture. He emphasized the need for a safer environment and the importance of changing social norms.
All in all, India’s economic growth is promising, but job creation and education quality remain major challenges. Addressing these issues requires attention to the conditions of mass education, high-quality teachers and labor-intensive manufacturing, and creating safer environments for women in the workforce.
Tune in!
(Moderator: V Nivedita; Producer: Jayapriyanka J)
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About the State of the Economy Podcast
India’s economy has been hailed as a bright spot amid the general gloom gripping the rest of the world. But while other industries appear to be pulling out all the stops, several continue to stall. To help you understand the contradictions in this country, career line Bringing you podcasts from experts in everything from finance and marketing to technology and startups.
