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“Creative destruction” dents inclusion and increases output: Reserve Bank of India Governor Shaktikanta Das

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Mumbai: Reserve Bank of India Governor Shaktikanta Das said the global recovery after the pandemic was uneven and the crisis reduced inclusiveness.
At the same time, it unleashed “creative destruction” that could increase productivity and change the course of development.
The governor pointed out that efforts to automate and digitize during pandemics would improve productivity, but that would pose challenges to the inclusiveness and loosening of the labor market. “Such a scenario requires significant employee skills / training, and as digitalization accelerates after a pandemic, we need to prevent the“ digital divide ”,” Das said.
According to Das, governments need to provide significant impetus for investment in health, education, low-carbon and digital economies, in addition to transportation and communications. In addition, warehousing and supply chain infrastructure will be important to enhance the added value and productivity of the agricultural and horticultural sectors.
“This will create employment opportunities in suburban and rural areas and promote inclusive growth,” said Das, who gave a keynote speech at the 48th National Management Conference of the All India Management Association. increase.
Mr. Das pointed out that the pandemic has more impact on the poor and vulnerable, especially in emerging and developing countries. “The permanent damage from pandemics in these segments is a serious concern for inclusive growth. In the medium to long term, both efficiency and equity are critical to sustainable growth and macroeconomic performance. “Das said.
The RBI governor said government measures to support the country's manufacturing industry have been successful. “The pandemic has become a focus on what India can achieve in the manufacturing arena. In the pharmaceutical industry, the first vaccine in history was developed and administered within a year, making India a pioneer in vaccine production. Yes, we continue to be a global leader, “says Das.
He said the Government-introduced Production Linked Incentive (PLI) scheme has made India home to almost every major global mobile phone manufacturer, transforming it from a mobile phone importer to an exporter. “This trend can spread to other sectors. The presence of global players will help increase India's share of the global value chain (GVC) and build a resilient supply chain network.” Said Das.
Sustainable growth requires building macro fundamentals through medium-term investment, a sound financial system and structural reforms, Das said. “Toward this goal, we need to drive significant investment in health care, education, innovation, physical and digital infrastructure,” says Das.

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