On this episode of the Bharatvaarta podcast, we talk to Manish Sabharwal, former independent director at the Reserve Bank of India, explores India's economic and educational reforms over the last few decades. He discusses the impact of city-based growth on GDP, the comparison between India's and China's stock market performance, and the complexities of creating mass prosperity. The discussion covers India’s reform agenda, including the significance of NEP 2020, the role of regulatory cholesterol, and the challenges posed by modern state populism. Sabharwal emphasizes the need for continuous, incremental reforms, formalization, and the crucial role of urbanization, industrialization, financialization, and human capital in ensuring sustained economic growth. He also touches upon the importance of skill development, overcoming regulatory barriers, and leveraging India’s demographic advantages and overseas diaspora to fuel future growth.

Topics:

00:00 Introduction

00:29 India's Economic Transformation: Past and Future

01:40 Challenges and Reforms in India's Economic Policies

02:21 Political Freedom vs. Economic Prosperity

03:01 Fiscal and Monetary Policy: Overrated Solutions?

04:48 Populism and Its Impact on Economic Growth

05:23 The Role of Government, Private Sector, and Non-Profits

08:40 Upcoming Budget and Economic Reforms

10:49 Ease of Doing Business: Regulatory Challenges

16:05 Education vs. Employability: The Skill Gap

21:34 The Importance of English in India's Job Market

28:38 Challenges of Local Governance in India

29:19 The Rise of Bangalore as a Tech Hub

30:35 Infrastructure and Job Creation

32:26 The Future of Kirana Stores and Self-Employment

34:07 Regulatory Challenges and Economic Reforms

34:26 Unpredictability of Job Creation

35:52 Formalization and Urbanization for Economic Growth

37:42 India's Economic Potential and Global Position

46:15 Structural Reforms and Future Challenges

50:19 Leveraging India's Diaspora and Entrepreneurship

52:43 Conclusion: Seizing the Opportunity