New Delhi, Feb 8 (KNN) Former RBI Governor Rangarajan underscored the potential of technology and Free Trade Agreements (FTAs) to invigorate India's economy, on Wednesday.

Speaking at the 40th-anniversary Event of CUTS International on the theme of the lecture ‘Growth Prospects of the Indian Economy’, Rangarajan urged India to capitalise on FTAs with nations possessing transparent trading systems and robust business frameworks.

Dr. Rangarajan advocated for harnessing modern technology to enhance employment in labour-intensive sectors.

“The success of such initiatives hinges on India's capacity to capitalise on its demographic dividend by enhancing labour force participation, including through up-skilling initiatives,” Dr. Rangarajan explained.

In addressing poverty, he stressed, “Abolishing poverty should be at the top of our priorities and measuring poverty should include both indicators of expenditure as well as the multidimensional poverty measure.”

Further, he added that “Investment should not be based on consumption or demand for consumption, it is the investment that creates demand for consumption.”

Dr. Rangarajan emphasised that investment should focus on creating demand rather than responding to it, highlighting the necessity of fostering a conducive investment environment.

He underscored the significance of considering both economic and non-economic factors to achieve long-term economic prosperity.

(KNN Bureau)