'World not keen on another China': Raghuram Rajan cites 2 points in India's attempt to imitate Beijing

Former RBI governor Raghuram Rajan feels India's attempt to imitate China's export-led path will be futile, instead the country should build on its strengths, including "services exports and democracy". 

In an article in the Financial Times, Rajan cited two problems that India has that Beijing did not have in its pursuit for growth. First, it reaped the benefits of first-mover advantage. Second, Rajan says, is that the world would not want to encourage 'another China' as they would be mindful of the scrutiny Beijing escaped while on the growth path. 

Rajan stressed on a stronger democracy that will help India secure its economy and make it a trusted destination for foreign investors. 

He says it is pertinent for India look at improving the quality of its schools and universities, instead of  having “300,000 engineers working on chip design for companies across the world”. 

Rajan recently clarified his stand that he was not against manufacturing or against making more in India, but was concerned about the use of subsidies and tariffs in a non-transparent way. 

Rajan has questioned the Centre's heavy subsidies to big firms under the PLI scheme and massive incentives for chip manufacturing in India. 

"We are not against manufacturing or against domestic defense production, or against making more in India. We do not advocate services at the expense of manufacturing. I would love more Indians to have jobs outside agriculture, and manufacturing is certainly one important possibility. I have long been an advocate for enhancing domestic defense production wherever possible," he said in a lengthy LinkedIn post.