Growth and Equity: Two Essential Ingredients of Viksit Bharat, Marks Former RBI Governor at Ahmedabad University

Experts Discuss Contemporary Challenges in Modern Economics and Potential Solutions at the 6th Annual Economics Conference at Ahmedabad University

The economic uncertainties prevailing in the global system are deep. For instance, free and fair trade was once considered the ideal for the world to aspire to. However, issues such as trade restrictions, the imposition of tariffs, and several others have now gained prominence. Consequently, global uncertainties and their implications for India are important, making this a fitting moment to address the issue. Sooner or later, India will need to respond to the situation. The country must combine growth and equity, achieving the required growth rate while simultaneously protecting vulnerable groups and other marginalised sections of society.

To address the complex challenges brought forth by economic uncertainties, experts from academia and industry came together to deliberate on these challenges confronting India and to explore potential solutions at the 6th Annual Economics Conference​​​​​​, organised by Ahmedabad University's Amrut Mody School of Management on 6–7 January 2025.

Themed ‘Contemporary Challenges in Modern Economics’, the two-day conference featured keynote addresses, paper presentations, and an industry-oriented panel discussions. The speakers addressed a wide range of sub-themes, from development issues related to gender and labour to governance concerns in health and education, macroeconomic and financial aspects of economic growth and monetary policy, environmental issues in agriculture and climate change, and applications of behavioural economics and experimental methods.

Speaking at the conference, C. Rangarajan​​​​​​, Former Governor of the Reserve Bank of India (1992–1997) and Distinguished University Professor at Ahmedabad University, stated: “Our development strategy in the coming years must be multi-dimensional, not unidimensional. We need to focus on exports, services, manufacturing, and agriculture. It will be useful to identify our own sunrise industries, which may differ from those of other countries.”

Professor Rangarajan highlighted that for India to become Viksit Bharat by 2047–48, the economy must grow at an annual rate of 6–7%. However, maintaining this rate will become increasingly challenging as the economy grows. Initially, higher growth rates are needed, with slower growth expected later. Furthermore, regional economic disparities must be addressed. At present, 52% of India's national income is generated by just seven states while the remaining 27 states and union territories contribute 48%.

Professor Rangarajan also emphasised the need for a subtle approach to economic development, stating that jobless growth is detrimental, but creating jobs without corresponding economic growth is equally unsustainable. He encouraged for examining the labour intensity of various sectors and integrating them into the industrial framework to create employment opportunities.

The global forum featured prominent experts, including Dr Dipesh Shah, Executive Director (Development) of the International Financial Services Centres Authority (IFSCA); Dilip Abreu, Professor of Economics at New York University, USA; Amrita Dhillon, Professor of Economics, Department of Political Economy, King’s College London; and Kalyan Chatterjee, Distinguished Professor of Economics and Management Science, Pennsylvania State University.

The panel consisted of notable participants -  Errol D'Souza, Professor of Economics at the Indian Institute of Management Ahmedabad; Tirthankar Patnaik, Chief Economist at the National Stock Exchange; and Rajeswari Sengupta, Associate Professor of Economics at the Indira Gandhi Institute of Development Research (IGIDR).

The keynote sessions explored diverse aspects of economics, such as the applications of game theory in understanding and predicting outcomes in economics, politics, and decision-making; the role of activism in political economy; the economics of establishing global financial centres; and the importance of recognising academic research that extends beyond patents in innovation. The panel discussions examined global uncertainties and their implications for India.

Emphasising the role of educational institutions in shaping India’s economic landscape, Dr Dipesh Shah stated: “The most important element in the dynamics of a financial centre is talent. If resolved, the probability of the centre’s success increases significantly. With so many educational institutions surrounding Ahmedabad, we believe that, in the next five years, the financial centre dynamics and economics will have a much greater impact than they do currently in terms of job creation and export of services. These two quantifiable measures are expected to expand rapidly as we move forward.”

Initiated in 2019, the conference aims to facilitate the cross-fertilisation of ideas among scholars from diverse fields. Professor Pankaj Chandra​​​​​​, Vice Chancellor of Ahmedabad University, highlighted the success of the conference in gaining recognition among scholars and its role in promoting interdisciplinary collaboration and research in economics, thereby contributing to positive societal change.