Davos: Former RBI Governor Raghuram Rajan has raised concerns about talented but underprivileged students failing to access premier institutions like IITs.

Speaking at the World Economic Forum in Davos, Rajan highlighted this as a significant challenge for India's human capital development.

Sharing an interaction with an NGO, Rajan said, “They identified bright, underprivileged kids who are extremely talented, but they can't get into IITs or tech colleges. This shows we have a thin layer of quality educational institutions that we must expand.”

He stressed that broadening access to top-tier education is vital for fostering job creators and innovators. Rajan suggested that government spending should prioritize improving education and skills training at all levels.

This issue, he noted, ties directly to India's broader economic challenges, including sluggish consumption and weak private sector investment. Rajan attributed the hesitation among businesses to invest to concerns about future demand, which stem from a lack of well-paying jobs and adequate opportunities.

Rajan underscored the importance of nurturing human capital through effective spending on education and healthcare.

“Improving the quality of primary schools and universities is crucial for India to thrive in the new economy,” he said.

Expanding opportunities for bright minds could be a key step toward sustainable economic growth.