Let’s not treat services as a stepchild: Former RBI governor Raghuram Rajan

CHENNAI: Former RBI governor Raghuram Rajan on Sunday said services and the manufacturing sectors have an equal and important role to play in India’s growth story, adding that the services sector should not be given ‘stepchild treatment’.

Rajan, who is also a Member of the Tamil Nadu Economic Advisory Council, said the manufacturing sector should not be oversubsidized.

Addressing a session at Tamil Nadu Global Investors Meet 2024, the former RBI governor said, “Don’t oversubsidize manufacturing and think that’s the only part of growth. Services are also a big part of the growth story, and let’s not treat services as a stepchild less valuable or less amenable to low-skilled jobs.

“Think about tourism in the state. How many jobs can be created through the tourism industry? There are so many opportunities to create low and semi-skilled jobs through that avenue,” he added.

On Tamil Nadu aiming to become a trillion-dollar economy by 2030, Rajan said, “I think it is important to set ambitious targets and then let’s see what happens. I think we have to make it possible. I think we should be as competitive as we can. It is important to focus on creating an environment for industry.”

Union Commerce Minister Piyush Goyal was among the top dignitaries at the Tamil Nadu Global Investors Meet 2024.

“I am delighted that Tamil Nadu has taken an ambitious vision to be a USD 1 trillion economy by 2030. And I wish the government, captains of industry, and the people of Tamil Nadu well in this endeavor to take Tamil Nadu to greater heights,” Piyush Goyal said.

Goyal said the central government has been working along with the governments of Tamil Nadu towards faster industrialization, providing welfare to the people of Tamil Nadu and ensuring inclusive and sustainable growth of the state.