Raghuram Rajan: India Must Tackle Malnutrition to Achieve Developed Nation Status

Former RBI Governor Raghuram Rajan stresses the need for India to address malnutrition and invest in human capital to become a developed nation.

Updated: Sunday, December 17, 2023, 23:06 [IST]

Raghuram Rajans Bold Statement: Can India Overcome Malnutrition by 2047? — Representative image

In a thought-provoking interactive session held at the Indian School of Business (ISB) in Hyderabad, former Reserve Bank of India (RBI) Governor Raghuram Rajan highlighted the urgent need for India to address malnutrition and focus on nurturing its human capital to achieve its aspiration of becoming a developed nation.

Malnutrition: A Barrier to Development

Rajan expressed concern about the prevalence of malnutrition in India, stating, "We are fixated with becoming a developed, rich country by 2047. I use this as an example to say, you must be joking about becoming a developed rich country by 2047 with 35 percent malnutrition today." He emphasized that children suffering from malnutrition today will join the labor force in the future, potentially hindering India's economic growth.

Nurturing Human Capital: India's Most Important Asset

Rajan stressed the significance of nurturing human capital in India, saying, "In order to get the medium term right, we have to focus on India's most important asset, its human capital. We have 1.4 billion people more than any other country in the world." He emphasized the potential value creation that can be achieved by providing appropriate training to a large number of people.

Progress in Cleaning Up the Banking System

When asked about the progress made in cleaning up the banking system, which he had begun during his tenure as RBI Governor, Rajan expressed optimism, stating, "It's taken a long time, but I actually understand that it's now cleaned up."

Raghuram Rajan's insights underscore the critical importance of addressing malnutrition and investing in human capital development for India's long-term growth and prosperity. By tackling these challenges, India can unlock its full potential and move closer to achieving its goal of becoming a developed nation.