Noble laureate Paul Krugman has expressed concern at the lack of manufacturing base in India and said that this situation could lead to massive unemployment scenario.
He said that the most of the world’s economies took off because of growth in the manufacturing sector.
He added that India’s demographic dividend puts it at an advantage.
Krugman insisted that to be able to take advantage of the demographic dividend, it is essential that India creates lost of manufacturing jobs.
The economist cited the examples of Japan and China to emphasise his point.
He said that services sector alone would not suffice in taming the unemployment scenario.
India has achieved much more economic growth in 30 years than what Britain had achieved in 150 years, Krugman said.>