'Creative destruction' dents imclusion, ups output: Das

Thursday 23rd September, 2021

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RBI GUV SAYS COVID UNLEASHED CREATIVE DESTRUCTION THAT'LL BOOST PRODUCTIVITY, BUT GLOBAL RECOVERY HAS BEEN UNEVEN 15 'Creative destruction' dents inclusion, ups output: Das Post-Pandemic Recovery Uneven Globally, Says RBI Guv Times News NETWORK Mumbal: 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 cart alter the caurse of development. The governor pointed out that the flllip to automation and digital during the pandemic would improve productivity, but ft would provide challenges to inclusiveness amd slack in the labour market. "Such a scenario calls for significant skilling/training of our workforce. We alsoneed to Euard against any emergence of 'digital divide' as digitisation gains speed after the pandemic," sald Das. According to Das, the &oyvernment needs to provide a big push to investment in health, education, low-carbon and digital economy in addi 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," sald Dias, delivering the Keynote address at the 4gth National Management Convention of the AllIndia Management Association. 5" calls for significant Skilling of our W orkforce. We also need to quard against any emergence of 'digital divide' as digitisation gains speed after the pandemic On Cowvid impact on poor and vulnera fle sections... 66 The lasting damage inflicted by the pandemic on these segments is of serious concern for mclusive growth. Inthe mediumto long-run, both efficiency and aguity will greatly matter for sustainable growth and macroaconomic performance SHAKTIKANTA DAS | GOVERNOR, REL Das noted that the pandemic has affected the Poor and vulnerable more, especialy 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 ETeatly matter for sustainable growth and macroeconomic performance," sald Das. The RBI governor sald that the government's measures to boost manufacturing tn the COouniry has yielded results. "The pandemic has brought to focus what India can achieve in the area of manufacturing. In the Pharmaceutical sector for the first time in history vaccines Were developed and admin iste red within a year with Indiaremaining a forerunner and a global leader in vaccine manufacturing," said Dias. He noted that productionlinked incentive scheme has resulted in India beinghome to leading global phone manufacturers and turning ftom being : an Importer to an exporter of mobiles. "Thistrend islikelyto : spill over to other sectors also. The presence of global players would help in enhancing India's share in global value chain and bullding up a resilient supply chain network," said Das. He added sustainable growth should entail building on macro fundamentals via medium-term tnvestments, sound financial systems and Structural reforms.