Gita Gopinath on India's path to becoming a developed nation by 2047
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Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund (IMF) and a professor at Harvard University, has emphasized the need for India to focus on enhancing its workforce and investing in key areas to achieve developed nation status by 2047.
Speaking at the Delhi School of Economics (DSE) during its Diamond Jubilee Conference, Gopinath highlighted several critical areas for India to address in order to sustain its economic momentum.
India, currently the fastest-growing major economy, must ensure that its workforce becomes "much more skilled and much more educated," Gopinath stated. This, she stressed, is essential for India to transition into a high-income economy.
Additionally, Gopinath pointed out the necessity of increasing investments in public infrastructure, noting a significant gap in this area. She also emphasized the importance of implementing institutional reforms to support long-term economic growth. Key reforms include improving the Ease of Doing Business, enhancing the efficiency of the judicial system, and undertaking land reforms.
Flexibility in labor markets, including the implementation of labor codes, and maintaining open trade policies were also identified as crucial elements. Gopinath further underscored the importance of increasing investments in health and called for greater participation of women in the labor force.
Earlier, Gopinath warned that climate change poses a significant risk to India's economic outlook and urged for substantial action to address this challenge. While acknowledging India's strong headline growth, she noted that employment growth has been relatively slow, with less than 2% growth in this area.
India's growth has been largely capital-intensive, with lower levels of employment generation. Gopinath emphasized the need for more investment in human capital and the skilling of workers. She also highlighted the urgent need to create between 60 and 148 million jobs by 2030 to meet the country's growing labor demands.