Only reasonable income jobs can help curb inequality in India, says Narayana Murthy
MUMBAI: The country needs to focus on creating jobs that provide a reasonable income to address the problem of inequality, Infosys Co-founder and president emeritus NR Narayana Murthy said Sunday.
He also emphasized moving a greater number of people from agriculture, where the income of GDP per capita is low, to manufacturing and low-tech services, where income levels are comparatively better.
The only way to reduce inequality in a country like India is by creating jobs and creating jobs with reasonable incomes, Murthy said by addressing a technology festival organized by IIT Bombay through videoconferencing.
In India, almost 58 percent or about 650 million people depend on agriculture, which contributes only to 14 percent of GDP, he said.
In other words, if the per capita income of an Indian is $ 2,000, those who work in agriculture barely cost $ 500 per year because these 58 percent people contribute only 14 percent of GDP, said the IT industry veteran.
This $ 500 per year translates into about $ 1.5 per day or Rs 100 per day, in which these people have to eat, take care of their health, educate their children and pay the rent, among others, Murthy said.
Therefore, poverty in India is absolutely huge. The only way to improve is to move people from agriculture to low-tech services and manufacturing, where, hopefully, we should be able to take them somewhere between $ 1,500 and 2,000 per year. Murthy said.
Unfortunately, our country has not succeeded in doing so because our infrastructure is very poor and state governments do not understand the problems and have not facilitated the lives of entrepreneurs to manufacturing and low-tech services, he added. .
Murthy also said that there is a need to improve agricultural productivity through the use of more and more technologies.
He also advised the country's IT companies to focus on innovations to improve quality, provide better value to customers and encourage their employees to adopt new ideas that will begin to give opportunities in the next 10-15 years.