VOICE AND VIEWS

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 CBS LINE

Volume 4(1)

Interviewee - Prof.Veeramani

Professor C. Veeramani is a distinguished economist currently serving as the Director of the Centre for Development Studies (CDS), Thiruvananthapuram. With a career spanning over two decades, he is widely regarded as a leading authority on International Trade, Global Value Chains (GVCs), and Industrial Productivity in India.

Before leading CDS, Professor Veeramani held key academic positions at the Indira Gandhi Institute of Development Research (IGIDR), IIT Bombay, and ICRIER. His expertise is frequently sought at the highest levels of policy; his groundbreaking research on "network products" was a cornerstone of the Economic Survey 2019-20, shaping national conversations on job creation through global production sharing. 

A Jawaharlal Nehru University (JNU) alumnus and recipient of the prestigious EXIM Bank International Economic Development Research Award, Professor Veeramani also serves on several high-level committees, including the RBI’s Empowered Committee on External Commercial Borrowings.

                

In conversation with Prof. Veeramani


India’s economic growth has been uneven. What needs to change for it to improve everyday lives?

Growth gaps show up across regions and social groups. States with stronger governance and business-friendly institutions attract investment, while others lag. The bigger issue? India’s growth has leaned heavily on capital- and skill-intensive sectors like IT and finance within the service sector, which don’t employ many low-skilled workers. Similarly, fast growing manufacturing sectors like auto and pharma mainly employ high skilled workers. To make growth inclusive, labor-intensive sectors—apparel, footwear, light manufacturing, and agriculture—need room to expand, backed by better governance, simpler regulations, and stronger human capital.


What makes employment “future-ready” for India?

India’s strength is its vast labor force, especially workers with basic education. Future-ready jobs won’t come from trying to outcompete rich countries in high-tech manufacturing, but from plugging into global markets for labour intensive activities where India enjoys comparative advantages. With only ~2% of global exports today, India needs to be more outward-looking—lower barriers, attract global firms, and integrate into global value chains that create jobs at scale.


Does export-led growth really help workers?

Yes—when it’s labor-intensive. Bangladesh’s garment boom shows how exports can lift incomes, empower women, and improve health and education outcomes. India’s mobile phone export surge in recent years hints at similar potential in other manufacturing sectors. Stable factory jobs, even at modest wages, can be life changing for the poor compared to informal work.


What about job losses from trade?

Some displacement is real, but the net effect of trade in India is positive. The fix isn’t protectionism—it’s better transitions: retraining, income support, and clear pathways into expanding sectors.


Can trade reduce inequality?

In theory, yes. For a labor-abundant country, open trade should benefit low-skilled workers the most. If India removes domestic bottlenecks, integrate into global value chains and lets labour-intensive manufacturing and high-skill services grow, trade can become a tool for inclusion—not inequality.

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