Noida and Gurgaon operating at first-world economy standards: Raghuram Rajan

Former RBI governor Raghuram Rajan has highlighted the divergent economic landscapes within India, citing pockets of excellence akin to "first-world" standards coexisting alongside areas struggling below the benchmarks of even third-world countries. Rajan's comments came during a conversation on YouTuber Akash Banerjee’s 'The Deshbhakt' channel podcast.

Singling out regions like Noida and Gurgaon, Rajan emphasized that certain segments of the Indian economy are thriving at levels analogous to developed nations. However, he also underscored the grim reality that several parts of India lag significantly behind, worse off than even some regions in sub-Saharan Africa.

Addressing the nation's economic trajectory, Rajan delved into the ambition set forth by Minister of State for Finance Pankaj Chaudhary, who anticipates India evolving into a $5 trillion economy in the near future and advancing as an economic powerhouse by 2047. Rajan expressed skepticism about achieving the desired growth rate, citing the country's current per capita income of around $2,500, trailing China by $3,000.

While acknowledging the gravity of challenges, Rajan urged a collective endeavor to bridge economic disparities, stressing the necessity of propelling every sector to a comparable echelon for national progress. He highlighted malnutrition as a crucial concern that demands immediate attention, urging a shift in perspective from shame to proactive resolution. He stressed the imperative need to address malnutrition as a fixable problem, advocating a mission-mode approach to reduce and eventually eliminate it within five years.

Highlighting regional disparities, Rajan noted that while some areas like Kerala showcase a 6% malnutrition rate, others in Bihar and Jharkhand grapple with rates exceeding 35%, emphasizing the vast socio-economic contrast prevalent in India.

Rajan concluded by advocating for learning from the best practices even within India and striving to elevate the nation to at least a moderate middle-income status by 2047, emphasizing the need for innovative solutions to expedite economic progress and combat pressing issues like malnutrition.