On this episode of the Bharatvaarta podcast, we talk to Manish Sabharwal, former independent director at the Reserve Bank of India, explores India's economic and educational reforms over the last few decades. He discusses the impact of city-based growth on GDP, the comparison between India's and China's stock market performance, and the complexities of creating mass prosperity. The discussion covers India’s reform agenda, including the significance of NEP 2020, the role of regulatory cholesterol, and the challenges posed by modern state populism. Sabharwal emphasizes the need for continuous, incremental reforms, formalization, and the crucial role of urbanization, industrialization, financialization, and human capital in ensuring sustained economic growth. He also touches upon the importance of skill development, overcoming regulatory barriers, and leveraging India’s demographic advantages and overseas diaspora to fuel future growth.
Topics:
00:00 Introduction
00:29 India's Economic Transformation: Past and Future
01:40 Challenges and Reforms in India's Economic Policies
02:21 Political Freedom vs. Economic Prosperity
03:01 Fiscal and Monetary Policy: Overrated Solutions?
04:48 Populism and Its Impact on Economic Growth
05:23 The Role of Government, Private Sector, and Non-Profits
08:40 Upcoming Budget and Economic Reforms
10:49 Ease of Doing Business: Regulatory Challenges
16:05 Education vs. Employability: The Skill Gap
21:34 The Importance of English in India's Job Market
28:38 Challenges of Local Governance in India
29:19 The Rise of Bangalore as a Tech Hub
30:35 Infrastructure and Job Creation
32:26 The Future of Kirana Stores and Self-Employment
34:07 Regulatory Challenges and Economic Reforms
34:26 Unpredictability of Job Creation
35:52 Formalization and Urbanization for Economic Growth
37:42 India's Economic Potential and Global Position
46:15 Structural Reforms and Future Challenges
50:19 Leveraging India's Diaspora and Entrepreneurship
52:43 Conclusion: Seizing the Opportunity