India lags behind other G20 nations in employment generation and needs to create between 60 million and 148 million additional jobs by 2030 to keep up with population growth, according to Gita Gopinath, the IMF's First Deputy Managing Director.
Speaking at the Delhi School of Economics Diamond Jubilee event on Saturday, Gopinath noted that while India's economy grew at an average rate of 6.6 per cent from 2010, employment growth was below 2 per cent.
She emphasised that India’s employment rate is significantly lower compared to other G20 countries. With the current population projections, India faces the urgent challenge of creating a substantial number of jobs in the coming years.
Gopinath highlighted that achieving this goal will require fundamental reforms, including land and labour code reforms. She also stressed the need for increased private investment, which currently does not align with the country’s 7 per cent GDP growth.
While public investment is progressing, private investment needs to rise, she said. Gopinath also called for a revamp of India’s education system to enhance workforce skills, improvements in the ease of doing business, a better regulatory environment, and a broader tax base.
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