Renowned economist and former Reserve Bank of India Governor, Raghuram Rajan, has emphasized that India’s path to economic success is intricately linked to the growth and development of its services sector. Speaking at a recent economic forum, Rajan highlighted the critical role that services, such as information technology, finance, and tourism, play in driving the nation’s economic engine.

Rajan argued that while manufacturing and agriculture are vital components of the economy, the services sector offers the greatest potential for rapid and sustainable growth. “India has a competitive advantage in services, and by leveraging this, we can achieve significant economic milestones,” he stated. He pointed to the robust performance of IT services, which have been instrumental in positioning India as a global economic player.

Furthermore, Rajan stressed the importance of policy reforms and investments in education and infrastructure to support the services sector. By enhancing skill development and improving digital infrastructure, India can attract more investment and create high-value jobs, ultimately leading to a more prosperous and resilient economy. His insights call for a strategic focus on services to unlock India’s full economic potential.