Need to make sure benefit of economic growth is evenly shared: D Subbarao
Former Reserve Bank of India (RBI) Governor D Subbarao has stressed on the need to accelerate India’s economic growth rate and make sure that this benefit of growth is shared, even as he said that unemployment has taken a form of ‘crisis’ in the country. Subbarao further said the organised sector is shedding jobs and the labour force is moving from high productive sector to the unorganised sector.
According to Subbarao, faster growth is necessary but at the same time it is not sufficient, and there is a need to address the issue of rising inequality as well. Subbarao explained that economic growth comes from private consumption, private investment, government expenditure and net exports.
Observing that household incomes have gone down and households are uncertain about the future, so the country can't depend on consumption as a growth driver. 'So, we have to depend on government expenditure and net exports...We have to fire all cylinders,' he said. He pointed out that although inequality has grown, profits of corporates have also increased. He said large corporations' market share has increased at the cost of smaller companies. This is an evidence of growing inequality.
