The government is paying heeds to issues such as job reservation, which has the potential of damaging the job market of India. Raghuram Rajan states that these sentiments of certain communities in India, will hurt the fact of unemployment rising.
There are a number of groups such as the Patidar community in Gujarat who are feeling discriminated and seeking reservation in jobs. There is also the Jat community who are raising their voice of concern for such discrimination. These communities press for reservations because jobs can’t be found.
This populist nationalism exists the world over, and this has been exploited on. It is a full stop to growth in a country. This populist nationalism is inward looking!
Raghuram Rajan stated, “There are underlying issues, for example, an issue of jobs. Pretty strong communities in India have started protesting for a reservation because ultimately it comes down to finding jobs.”
Raghuram however states that India being a Democracy needs to hear the voice of concern and tackle the problem in a more unified way. Democracy has its benefits of bringing together a common solution to a problem by hearing the public speak up freely.
When looking at the year of 2017, there is an increase in employment opportunities in the private sector where reservation are not applicable. This will tend to become an issue, and a voice of concern from certain groups might rise. Well as said before, democracy needs to shout, for it to remain fulfilled and successful.
Instead of reservations, the better educated youth, uneducated agricultural workers and young women who are better than educated than most needs to be of the primary importance given their hard work and circumstances.
The employment growth is growing at 2% a year, in the formal sector with a forecast of 12 to 15 million Indians entering the labour force each year.
Raghuram Rajan had an interesting history as RBI Governer, with his open mind and a being a person who speaks his mind. He is currently a professor at the University Of Chicago Booth School Of Business.