Raghuram Rajan shared his views recently on what he felt India needs to do get out of the middle income trap in the next 30 years, while we still can leverage the demographic dividend to our fullest advantage.
A key highlight he pointed was that apart from emphasizing development manufacturing sector, there needs to be strong development of 'high value added services' to keep the economy growing. While there were some examples provided in the news that shared this, I would love to know what are some examples of high value added services in this context?
He calls semiconductor device design/manufacturing as low value add🥲
However, only few nations can do
such technologies and needs sophisticated infra, manpower. How to trust such economists driven by an agenda?
He called out subsidies given to Micron to manufacture DRAM memory chips as low value add. DRAM memory was out of fashion since 1994 when Intel themselves got out of it.
He said we already do a lot of high value add Semiconductor design for processing chips in Bangalore (Qualcomm, Intel, TI, Nvidia, AMD) we have the manpower, skill and the know-how. We should capitalise on that. This is true high value add.
I am bit surprised by the statement “DRAM out of fashion”, whereas https://www.statista.com/statistics/271726/global-market-share-held-by-dram-chip-vendors-since-2010/ Reality is DRAM makes 11.4 B$/Quarter!! A simple google search will tell you difference between a bias and truth.
P.S. - I have worked with major semiconductor R&Ds across the world and have an h-index of 3.
One should not listen to Raghuram Rajan. He is heavily biased and anti government all the time. Better find good individuals to look up to.
Sorry, I think you should listen to everyone and draw the conclusion for yourself. There is no one out there who isn't biased, to take a stand is to be biased. But I hear you buddy
Would appreciate if you can share your recommendations on who to follow though
What economists mean is obscure at the best of times, especially a compromised one like RRR.
Best is to ask him what he specifically meant as High Value Add.
We already value added service industries in our country. I don't understand what else high value add above and beyond what we already have
Agreed. There's plenty of that in manufacturing too. Just look at what we're doing with Russian Crude as input and exports to the EU. Semiconductors is another mega area of investment and opportunity. We do that in auto exports too.
Knowing RRRs proclivities he may well have meant the country needs to plan for the monetisation of the Aloo > Sona transmogrification machine.
He wants India to just be a low cost service provider economy. He has stupid ideas don't listen to him
Hi, any market (eg construction, legal etc) you think has a gap/problem that can be solved by tech, but it hasn't been utilised that yet?
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