AIMA

'Creative destruction' dents inclusion, ups output: Das

Thursday 23rd September, 2021

Article Details
  • View Image
  • View PDF

RBI GUV SAYS COVID UNLEASHED 'CREATIVE DESTRUCTION THAT'LL BOOST PRODUCTIVITY, BUT GLOBAL RECOVERY HAS BEEN UNEVEN 17 'Creative destruction' dents inclusion, ups output: Das Post-Pandemic Recovery Uneven Globally, Says RBI Guv TIMES NEWS NETWORK Mumbai: RBIgovernor Shaktikanta Das had said that the post-pandemic recovery across the globe has been uneven and the crisis has dented inclusivity At the same time, it has unleashed "creative destruction", which will boost productivity and can alter the course of development. The governor pointed out that the fillip to automation and digital during the pandemic would improve productivity, but it would provide challenges to inclusiveness and slack in the labour market. "Such a scenario calls for significant skilling/training of our workforce. We also need to guard against any emergence of 'digital divide' as digitisation gains speed after the pandemic," said Das. According to Das, the government needs to provide a big push to investment jn health, education, low-carbon and digital economy in addi On digitisation... On Covid im tion to transport and communications. In addition, the warehousing and supply chain infrastructure will be critical to bolstering value addition and productivity in agricultureand horticulture. "This will create employment opportunities in semi-urban and rural areas and promote inclusive growth," said Das, delivering thekeynoteaddress atthe 48th National Management Convention of the All India Management Association. s Such a scenario calls for significant skilling of our workforce. We also need to guard against any emergence of 'digital divide' as digitisation gains speed after the pandemic ct on poor and vuinera bie Sections... The lasting damage inflicted by the pandemic on these segments is of serious concern for inclusive growth. In the mediumto long-run, both efficiency and equity will greatly matter for sustainable growth and macroeconomic performance SHAKTIKANTA DAS | GOvERNOR, RBI Das noted that the pandemic has affected the poor and vulnerable more, especially in emerging and developing economies. "The lasting damage inflicted by the pandemic on these segments is of serious concern for inclusive growth. In the medium to long run, both efficiency and equity will greatly matter for sustainable growth and macroeconomic performance," said Das. The RBI governor said that the government's measures to boost manufacturing in the country has yielded results. "The pandemic has brought to focus what India can achieve in the area of manufacturing. Mm the pharmaceutical sector for the first time in history, vaccines weredeveloped and administered withina year with Indiaremaining a forerunner and a global leader in vaccine manufacturing," said Das. He noted that productionlinked incentive scheme has resulted in India beinghometo leading global phone manufacturers and turning from being an importer to an exporter of mobiles. "Thistrend is likely to spill over to other sectors also. The presence of global players would help in enhancing India's share in global value chain and building up a resilient supply chain network," said Das. He added sustainable growth should entail building on macro fundamentals via medium-term investments, sound financial systems and structural reforms.