The latest OECD Economic Survey of India highlights that while India has greatly expanded its participation in global trade in recent years, private investment remains relatively weak, the employment rate has declined amid a shortage of quality jobs, rural incomes are stagnating, and per-capita income varies considerably across states.
The Survey sees India’s GDP growth recovering to 6.2% in 2020 and 6.4% in 2021 after dipping to 5.8% in 2019 following several years of robust growth.
The Paris-based organization, OECD suggests that reforms should further be modernised.
India needs reforms that drive the creation of high-quality jobs, as well as measures to improve public services and welfare.
Chief Economist Laurence Boone said, “The slower pace of growth underlines the need to fully implement existing reforms and continue lowering barriers to trade to generate the investment and jobs India needs to raise living standards across the country.”
With India's working-age population being between 15 and 64 years, the country has the demographic dividend in its favor and a huge potential to grow. However, poor labor reforms and lack of skilled labor, and many other factors are holding the Indian economy back. As the report suggests, restoring growth to the higher levels needed to provide ample jobs and ease inequality will require accelerating the pace of structural reforms to revive investment and exports.