Concept BIU -

‘Creative destruction' casts shadow on inclusion, but ups output: Das

Article Details

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.
September 23, 2021, 21:47 IST
Mumbai:
RBI governor
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 fillup 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.
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 Shaktikanta Das
According to Das, the government needs to provide a big push to investment in health, education, low-carbon and digital economy in addition to transport and communications. In addition, the warehousing and supply chain infrastructure will be critical to bolstering value addition and productivity in agriculture and horticulture. “This will create employment opportunities in semi-urban and rural areas and promote inclusive growth,” said Das, delivering the keynote address at the 48th National Management Convention of the All India Management Association.
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. In the pharmaceutical sector for the first time in history, vaccines were developed and administered within a year with India remaining a forerunner and a global leader in vaccine manufacturing,” said Das.
He noted that production-linked incentive scheme has resulted in India being home to leading global phone manufacturers and turning from being an importer to an exporter of mobiles. “This trend 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.