India is not only the fastest-growing country but also among the poorest in the G20, said former RBI Governor Raghuram Rajan. In a recent interview with international media outlet CNN on the topic 'On GPS: India’s Employment Crisis,' he highlighted this duality. Rajan pointed out that the unemployment rate in India was 8.1% as of April this year, according to CMIE reports. He emphasized that only 37.6% of the working-age population is employed, reflecting the significant challenge of job creation despite rapid growth. Although India is growing faster than developed nations at a rate of 6.5%, the high population poses a unique challenge. However, this large youth workforce could be a boon if employment opportunities are created. Rajan noted that India could soon surpass Japan and Germany to become the third-largest economy, thanks to the current government's focus on infrastructure development like roads and railways. Nonetheless, he stressed the need for a more innovation-friendly environment and freedom for discussions to ensure sustainable growth.
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