Nifty99000 100%

Sensex99000 100%

Article rating: 4.3
Article rating: 4.1
Article rating: 4.3
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: 4.0
Article rating: No rating
Article rating: 3.0


’Don’t let ’robophobia’ deter manufacturing, export strategy for growth’

Author: IANS/Tuesday, October 3, 2017/Categories: Technology

’Don’t let ’robophobia’ deter manufacturing, export strategy for growth’

By Arul Louis 

United Nations, Oct 3 - The threat to jobs from automation was overstated and "robophobia" should not deter countries from adopting a manufacturing and exports based strategy for rapid economic growth, according former Niti Aayog vice chairperson, Arvind Panagariya.

"One should not freeze in to inaction on account of 'robophobia' from following the path of manufacturing and exports that had led some of the Asian countries out of poverty," Panagariya said while addressing the UN General Assembly's committee on economic and financial issues.

"Countries easily have a 15-year window to pursue manufacturing and exports based strategy."

The technologies have to be invented or developed and then they have to commercialised before robots can replace workers, he said.

Panagariya, who left the Niti Aayog late August and was now back at the Columbia University where he is the professor of economics holding the Jagdish N. Bhagwati chair of Indian Political Economy.

Fresh from a 32-month stint helping develop economic policies and direction for India, he was invited by the General Assembly committee to deliver the keynote address on "Road to Rapid Economic Transformation" at its inaugural meeting of the current session.

"Rapid economic growth held the key to elimination of poverty by both raising incomes and increasing the resources available to governments for investing in social programmes.

"Today there is scepticism about whether countries can repeat the performances of countries like South Korea and Taiwan by following their models of growth because of fears of automation and growing protectionism in the industrialised countries.

"We overstate because we can see what jobs automation will destroy (but) we cannot see what jobs automation will actually create. I draw on the history... No automation of the past has actually cut jobs. It has made us only busier and busier," the former vice chairperson added.

While there were adjustments to be made in the short term, medium to long-run automation made the "labour market more intense," he said.

There were some areas like making clothes or some technology manufacturing where robots cannot do the work of human beings and these were in labour-intensive sectors that have an important role in the early phase of high growth, Panagariya said.

As for fears of protectionism, he said that what matters to most countries is whether they can "capture a slightly larger piece of the gigantic world exports pie" than the changes to its size.

"The global market in merchandise and services exports is about $22 trillion and whether it expands to $25 trillion or shrinks to $20 trillion in the next five to seven years matters less compared to growing their share of the market by countries."

For example, it was more important for India has to work on growing its share of the global market from the current 1.7 per cent to 5 to 7 per cent, he added.

In pursuing the UN goals of sustainable development, according to Panagariya, income redistribution alone would not go far in alleviating poverty without economic growth.

Only five countries -- Japan, South Korea, Taiwan, Singapore. China -- have grown at rates of 8 to 10 per cent over two decades and were able to rapidly transform themselves from traditional to modern societies practically eliminating poverty, he said.

"They were able to achieve in two or three decades what had taken the western industrialised nations a century."

India seems to be the sixth country to be on that kind of a growth path, having grown at an average rate of 7.8 per cent over the last 14 to 15 years.

Although economists tend to underplay the role of leadership, it is the key factor in helping countries achieve high growth, he added.

Print Rate this article:
No rating

Number of views (195)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free