August 17th 2024.
During a Diamond Jubilee event at the Delhi School of Economics, IMF's First Deputy Managing Director Gita Gopinath expressed concern over India's employment growth in comparison to other G20 nations. She highlighted that although India had an average growth rate of 6.6% for the past decade, the employment rate remained under 2%. This indicates that India has been lagging behind in terms of job creation.
Gopinath emphasized the need for India to create an additional 148 million jobs by 2030, considering the country's population growth. She pointed out that between now and 2030, India will have to generate anywhere between 60 million to 148 million jobs, a significant number that needs to be addressed in a short period of time. To achieve this, she stressed the importance of implementing basic reforms such as land reforms and labor codes.
The key to generating more jobs, according to Gopinath, lies in increasing private investment. She noted that although India's GDP has been growing at a rate of 7%, private investment has not kept up with it. On the other hand, public investment has been doing well, but it cannot solely drive job creation. Therefore, there is a need for a boost in private investment to create more employment opportunities.
Gopinath also highlighted the need for India to revamp its education system to improve the skill set of its workforce. This will help in meeting the demands of the job market and bridge the gap between the skills possessed by the workforce and the skills required by employers. In addition, she suggested that India should focus on improving the ease of doing business, creating a more favorable regulatory environment, and broadening the tax base.
Overall, Gopinath's remarks shed light on the pressing issue of employment generation in India and the steps that need to be taken to address it. It is crucial for the country to work towards creating a conducive environment for private investment and implementing necessary reforms to boost job creation. Additionally, improving the education system and creating a more business-friendly atmosphere are also essential for achieving the goal of creating 148 million jobs by 2030.
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