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Inequality poses grave danger: Dr Manmohan Singh

The former PM also pointed out that the recent research has shown \"how income inequality in India has grown since independence\".

KOCHI: Former Prime Minister Dr Manmohan Singh has expressed concern over the growing inequality in the country. Addressing a seminar on Macroeconomics and Developments in India at the St. Teresa's College here on Saturday, he said, "Inequality and joblessness can be extremely dangerous in a diverse nation such as ours". In a speech lasting nearly an hour, Dr Singh said the rapid economic development in the last few decades had also been accompanied by rising income inequality both at the individual and regional levels. "It is time we pause, step back and recalibrate our macroeconomic thought that will acknowledge both the virtues and pitfalls of free markets," he said.

The former PM also pointed out that the recent research has shown "how income inequality in India has grown since independence". "Economists have also pointed out how state-level regional inequality has also grown in independent India where some states are outperforming the rest," said the seasoned economist widely regarded as the architect of India's economic reforms. Referring to the inability of the economy to create more jobs, the former Prime Minister said, "our nature of economic development is not leading to the creation of enough jobs to absorb all the new entrants to the labour force estimated at 10-12 million per annum".

Stating that there are no easy economic solutions for these problems he said the "world grapples with the dilemma of balancing the benefits and damages caused by globalisation, market failures and domestic imperatives". According to Dr Singh, "perhaps we need a new macroeconomic thought involving a judicious blend of fiscal, monetary and exchange rate policies, to emerge to meet these challenges". He had dealt extensively on the economic policymaking in the country since the independence and pointed out the imperatives for the state control in the early decades of the Independence followed by more market-friendly approaches in the past 30 years.

( Source : Deccan Chronicle. )
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