Don’t focus on the idea that only export-led manufacturing creates jobs: Raghuram Rajan

Published on July 21, 2026. In this episode of Frontline Conversations, economist and former RBI Governor Raghuram Rajan offers an analysis of India’s economic direction, both at home and globally. In a broad conversation with senior journalist Sukumar Muralidharan, Rajan talks about global trade barriers, India’s industrial policy, and the challenges to achieving inclusive growth. He explains why India’s population advantage could be wasted, why high-value services might shape the country’s future more than manufacturing, and why real reform needs more decentralisation and competition. He also addresses growing concerns around data suppression, rising market risks, and the erosion of democratic accountability. Context: India stands at a crossroads: its economy is growing, but not fast enough to lift millions out of poverty before the country ages. Global challenges like the US trade barriers and changing trade patterns, along with domestic issues like unclear rules, powerful elites, and few new jobs, are holding India back. Raghuram Rajan shares a hopeful view on how India can change its growth path to become more competitive, fair, and prepared for the future. Chapters: 00:00 – Protectionism in Washington, DC: What it means for India 00:45 – Why the US is turning inward on trade 02:50 – Tariffs, China, and shifting trade dynamics 06:55 – The real cost of tariffs and trade tensions 08:12 – India's trade policy and economic headwinds 13:55 – Fixing India’s growth strategy: Manufacturing vs services Highlights: -Why the US tariffs aren’t just posturing and what they mean for India -How India’s protectionism creates uncertainty for business -Why India’s population dividend may be slipping away -Manufacturing’s limits and why services might hold the key -A strong case for decentralisation and community-level governance -The dangers of data suppression and state-led narrative control Perfect for: -Students and scholars of economics and development -Viewers interested in India’s economic and political trajectory -Policy professionals, journalists, and think tank researchers -Citizens seeking insight into governance, growth, and reform Credits: Host: Sukumar Muralidharan Produced by Kavya Pradeep M. and Saatvika Radhakrishna Assistant Producer: Zara Zafia Editor: Razal Pareed Subscribe to Frontline: https://frontline.thehindu.com/online...