Rahul Gandhi believes that for a large country like India, the key to solving its unemployment crisis lies in organizing production.
Speaking to students at Georgetown University, the Congress leader emphasized that India cannot avoid manufacturing if it wants to create jobs.
“In India, there is an IT industry that employs 1-3% of the population, but if you are a young person seeking a blue-collar job, it’s not available. The only way to create those jobs is to start producing. India has stopped producing,” he said.
Gandhi pointed out that India's top businesses—Adani, Ambani, and other big players—are not focused on production, which he sees as a fundamental issue. According to him, India’s economic structure favors consumption over production, and the Goods and Services Tax (GST) is one such policy that hinders manufacturing. “There is a whole set of structures that don't allow production. For example, GST is anti-production. You need to completely rethink your approach,” he stated.
Reflecting on global trends, Gandhi explained that countries like China have become dominant in production, while India and the West have shifted toward organizing consumption.
He used examples like Uber and Ola, which organize consumption, and contrasted them with companies like Foxconn and Tesla, which focus on production. “The components of Elon Musk’s cars, including batteries and motors, come from China,” he pointed out, illustrating how crucial production is for economic growth.
Gandhi proposed a shift in focus, suggesting that India should move from just having District Collectors to establishing District Producers to encourage local manufacturing. He warned that large monopolies in India prefer to sell imported goods because it’s easier and more profitable than dealing with the complexities of production.
“You make a profit from it, but it’s not sustainable,” he said, noting that this model leads to rising unemployment and growing social tensions.
For Gandhi, addressing this issue is critical to India’s future. He argues that India’s economic policies must evolve to foster production, create blue-collar jobs, and reduce dependence on imported goods if the country is to become truly self-reliant.