India must prioritize job creation alongside rapid economic growth: Ex-RBI chief

India's economic growth must be productive and job-creating, not simply fast-expanding, according to D Subbarao, the former governor of the Reserve Bank of India. While acknowledging the economy's resilience, Subbarao stressed that policymakers face a more complex challenge than simply achieving higher GDP figures.

"India's 7.8 per cent growth in the first quarter suggests that the economy is more resilient than many expected," Subbarao told PTI. "I am optimistic about India's medium-term prospects, but not complacent."

Sustaining growth rates of 7 per cent or above will require a multifaceted approach, Subbarao outlined. Key pillars include strengthening private investment, expanding labour-intensive manufacturing sectors, upgrading human capital through better education and skills, and deepening India's integration into global value chains.

His comments come as international institutions reassess India's economic trajectory. The World Bank recently raised its GDP growth forecast for the current fiscal year to 7.1 per cent, up half a percentage point from April projections, citing robust domestic demand and strong export performance despite challenging global conditions.

The former RBI chief's emphasis on employment-intensive growth reflects broader concerns about India's ability to create sufficient jobs for its large and growing workforce while maintaining macroeconomic momentum.