India's growth path lies in liberal democracy to earn world's trust: Rajan

India's growth path lies in leveraging its intrinsic strengths and becoming crucial to global supply chains by building on its historic culture of tolerance and respect for all, former Reserve Bank of India governor Raghuram Rajan said here on Friday.

He stressed that India has the potential to take a leadership role in the services industry and strengthening the country's liberal democratic values was an economic necessity to earn the world's trust in this endeavour.

With reference to competing with a cheap manufacturing neighbour like China, the leading economist said India would benefit from focussing on the service component of manufacturing or services more directly as a trusted global supplier.

Our independent judiciary, our liberal democracy, these are critical advantages if we are to go down this manufacturing service-led growth path because this will enable us to earn the world's trust; it's intrinsically necessary, said Rajan in his keynote address at the 'Ideas for India