India must boost job quality, productivity to sustain growth: IMF

The IMF's upgraded growth projection signals confidence in India's economic trajectory, representing an increase from its previous estimate of 6.5% for medium-term potential growth. The revision reflects expectations of continued expansion across the South Asian economy, though the international lender has emphasized that realizing this potential requires targeted policy measures.

Among its key recommendations, the IMF has highlighted the urgent need for India to focus on job creation that goes beyond mere employment numbers. The emphasis on high-quality positions suggests addressing concerns about wage levels, skill development, and workplace conditions that have marked India's labor market in recent years.

Productivity growth has emerged as another focal area in the IMF's assessment. Analysts point to the necessity of improving output per worker through technological adoption, better infrastructure, and enhanced workforce capabilities. These improvements are viewed as essential to maintaining competitiveness and sustaining the higher growth rates projected in the medium term.

The IMF's October World Economic Outlook reflects broader international recognition of India's economic potential as a growing engine within the global economy. However, the accompanying guidance underscores that achieving the projected 6.8% growth rate will require concerted efforts to address structural challenges in employment and productivity across various sectors.