Former RBI Governer and IMF chief Economist Raghuram Rajan on Tuesday said that job creation will be the first task for any government in India.
Rajan was speaking at the launch his book The Third Pillar–How markets and the state leave the community behind.
“I would say that- one is start creating those jobs people want. Take care of the distress, but whatever measures you put, put them as a pathway for people to get those jobs rather than standing in the way of getting those jobs… We can talk about the economic reforms that are needed, but jobs are task one,” Rajan said.
The issue of unemployment in India has been one the key topic of debate ahead of the election. An National Sample Survey Office (NSSO) report suggested that unemployment rate touched a 45-year high of 6.1% in 2017-18.
In the interim budget of 2019 the government decided to give ₹6000 to every farmers and now Congress also stress at giving ₹72000 annually to poor and ensuring minimum wage of ₹12000 for everyone in their election propaganda.
However Mr Rajan stated “I am not saying that distressed farmer cannot benefit from cash transfer, I do worry about waiving loans because it only targeted to those farmers who have taken loans from the system, not the poorer farmers who have loans from the money lenders or an agricultural worker who never got a loan in the first place. So I would rather have a better targeted system,”
He further said that loan waivers spoils credit culture as it is difficult to lend to these farmers once again.
His new book also discuss how the three catalysts,the economy, society and the state–interact, why things begin to break down, and how we can find our way back to a more secure and stable plane.