258: Fixing Poverty in India | Manish Sabharwal (ex-Independent Director, RBI) | Policy

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