‘Barriers to exporting from China limited’, says Raghuram Rajan

CHENNAI : Former RBI Governor Mr. Raghuram Rajan on Sunday said that services are a big part of the growth story while suggesting people not treat them as ‘less valuable or less amenable’. He was speaking at the Tamil Nadu Global Investors Meet 2024 organised by the Tamil Nadu government here.

“Don’t oversubsidize manufacturing and think that’s the only part to growth… Services are also a big part of the growth story, and let’s not treat services as a stepchild less valuable, less amenable to low-skilled jobs. Think about tourism in the state,” the Tamil Nadu CM Economic Advisory Council Member said.

He further said, “How many jobs can be created through the tourism industry… So many opportunities to create low and semi-skilled jobs through that avenue… I’m a little more skeptical that we’re gonna see a whole lot of jobs fleeing China in the non-strategic areas…”

“The barriers to exporting from China are gonna be much more limited than in some of the more strategic areas where barriers have emerged…,” Mr. Rajan said, adding that it is important to set ambitious targets. 

He stated, “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…”

Tamil Nadu has signed investment pacts worth more than $4.39 billion with firms such as Apple suppliers Tata Electronics and Pegatron, as well as auto major Hyundai Motors, Reuters reported. 

“The Tamil Nadu government will support investors in every way possible,” Tamil Nadu Chief Minister Shri M. K. Stalin said at the event, adding that it sought to play a major role in India’s growth.

The pacts, unveiled at a meeting of global investors, are projected to generate thousands of jobs in the state.

The state’s summit comes days before Vibrant Gujarat Global Summit 2024 in Prime Minister Shri Narendra Modi‘s home state Gujarat where hundreds of domestic and foreign investors are expected to attend.