Labor markets: India should work more, says IMF’s Gita Gopinath
Virendra Pandit
New Delhi: While applauding the Indian economy for doing better than many economies, International Monetary Fund (IMF)’ s Deputy Managing Director Gita Gopinath said on Wednesday that the Asian nation needs to work more on labor markets and land.
On the sidelines of the ongoing World Economic Forum (WEF)’s meeting at Davos, Switzerland, she cautioned against growing fragmentation globally which would hurt the growth rate worldwide, the media reported.
The unfolding impacts of the Covid-19 pandemic and the 11-month-old ongoing Russia-Ukraine war have heightened many countries’ concerns about their national and economic security. This has forced them to undertake policies that could lead to greater fragmentation of economies.
Although India has been receiving lots of positive sentiments, greater reforms are needed to spur foreign direct investment (FDI) in the manufacturing sector.
Several businesses and companies are looking towards India as an investment destination as they try to diversify away from major economies, including China, Gopinath said.
Commenting on India’s growth rate, she said that in the current fiscal, it is 6.8 percent while it would be 6.1 percent for the next financial year.
