Former Governor of Reserve Bank of India (RBI) Raghuram Rajan said India is not attracting enough manufacturing through the China Plus One (a strategy with which companies have looked to build manufacturing units outside of China).
Mexico and Vietnam are attracting lots of manufacturing. However, India is attracting much less than it should, Mr. Rajan said here on Saturday. He was speaking at the launch of Breaking the Mould: Reimagining India’s Economic Future, a book he co-authored with Rohit Lamba, Assistant Professor of Economics, Pennsylvania State University.
There are a lot of things attractive about India for investors, including the huge domestic market and labour force. More than subsidies, investors want clarity on policy, the former RBI Governor said, adding, “We change policy every three months. Investors are going to set up factories for 30 years or more and they expect clarity on the policy front.”
