"Now, I definitely want to re-shore manufacturing industries to the U.S. But I recognize that this will require a lot of automation; the manufacturing of the future will be more like a tech industry and less of a source of mass employment.

So if we’re going to build a broad middle class through the creation of huge numbers of good middle-class jobs, those jobs are simply going to have to be in local services. And that means that we must transform employment at Starbucks and Amazon from low-paid, unstable fallback jobs into the kind of jobs people wouldn’t mind growing up and doing for a living.

That means higher wages, sure. But it also means better working conditions."

Link to the piece by Raghuram Rajan on why India should prioritise services over manufacturing.

Link to explainer videos by Akshat Srivastava that also explains the idea well.