Next year difficult for the entire world economy: Rajan

If 'reforms' are not done as needed, the problems of the economy will increase

Jaipur: With the Indian economy, the coming year may be difficult for the entire world. If 'reforms' are not done as required, the problems of the economy may increase, said Raghuram Rajan, Governor of the Reserve Bank of India.

Former Reserve Bank Governor Raghuram Rajan joined Rajasthan in the 'Bharat Jodo Yatra' held under the leadership of Rahul Gandhi. Meanwhile, in a conversation with Rahul Gandhi, he said very clearly, 'Private sector has to be encouraged because not everyone can get a government job.' Jobs can be created in agriculture sector if technological intervention is increased.

Rajan also advocated creating an enabling environment for small and medium scale enterprises and promoting a green revolution in the field of sustainable energy. The next revolution in the country could be in the service sector.

Along with this, he said about the growth rate metrics, what you measure with is important. If you look at the worst quartile of last year, this growth rate will seem very good, but the truth is that if we look at the current situation before the epidemic in 2019, then the true growth rate is only 2%. This rate is extremely low for us.

Asked the reason for this decline in growth rate, he said that the covid epidemic is only part of the problem. In fact, the slowdown began even before the pandemic. Because we could not make the necessary improvements for exports.

With this, the former governor of the Reserve Bank said that the income of the upper-middle class had increased. Because they could work from home. But those who worked in factories lost their jobs, lost their income. Thus the gap continued to widen during the pandemic.

The rich had no problem, the lower class got rations and other things, but the lower middle class suffered a lot. There were no jobs, small businesses collapsed. Policy makers must consider this category as unemployment is increasing. Policies should be formulated targeting this class as this class has suffered the most during the corona virus.

Emphasizing on green revolution, he said that we are witnessing a new kind of green revolution. The best we can do if we stick to it is building windmills. Regarding climate change, Rajan said, 'South Asia will suffer the most.