Even as the customers are benefiting from the new age technology firms such as Google providing services at cheap prices, a concern remains in the long-term, news agency PTI reported citing Raghuram Rajan. Speaking at World Economic Forum 2019, former Reserve Bank of India (RBI) Governor said that it’s to be seen for how long such a trend would continue.
The professor at the Chicago University also said the as nothing comes for free, it needs to be seen who pays for all this, PTI reported him saying. Rajan also wondered whether the business of scale is creating “super star firms” and who has the real power — is it large corporations or the governments?
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“Obviously they are making money somewhere and we need to know whether the two revenue sides of consumers and advertisers are comparable when it comes to data and technology platforms,” PTI also reported him saying.
“The concern is not so much about today, but about tomorrow. We need to think whether these benefits from scale would continue for the consumers,” he added.
Meanwhile, despite the fast pace of GDP growth, India is not being able to produce the required numbers of jobs for the people, Raghuram Rajan told ET Now. Even though it’s good for the economy to grow at a rate above 7, there are various challenges underlying the growth, former RBI Governor also said on the sidelines of ongoing World Economic Forum (WEF) 2019 in Davos.
Indian growth is mainly consumption-fed which doesn’t add on to the jobs in the country, he also said, adding India needs to create more jobs otherwise all the growth will be for nothing. Rajan also said that India needs to focus on macro stability as it move towards more job creation.
