Raghuram Rajan is the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth. He was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016. Between 2003 and 2006, Dr. Rajan was the Chief Economist and Director of Research at the International Monetary Fund.
Rohit Lamba is a Visiting Assistant Professor of Economics at New York University, Abu Dhab and starting Summer 2024 an Assistant Professor of Economics at Cornell University.
The book’s conceptual point is that, with China having driven rents down from low-skilled manufacturing, and with rise in automation and near and re-shoring of supply chains, how can countries with a demographic dividend grow? How should we think about structural transformation after the global industrialization?
There is a new pathway for growth for India based on services, both direct and those embedded in manufacturing, as the leading export sector. Rather than pursuing industrial policy, India should focus on fixing its deficiencies, prioritizing human capital in addition to the physical capital. This includes investing in education and healthcare, fostering innovation and creativity in high value-added sectors, and doubling down on democracy and rule of law.
India currently has a severe jobs problem. Promoting job creation is important because it will allow India to leverage its demographic dividend. The key question is: will India grow old before it grows rich?