From October 4 to 6 at the Kautilya Economic Conclave held in New Delhi, Alvaro Santos Pereira, Chief Economist of the Organisation for Economic Cooperation and Development (OECD), shared his outlook on the Indian economy. He described India as a ‘champion of growth’ within the G20 and globally, while emphasizing that further reforms, particularly in education and skill development, are essential to sustain and accelerate progress.
Pereira praised the economic reforms India has implemented over the past decade, which have spurred rapid growth, citing landmark initiatives like the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code and labor reforms. These measures, he explained, have enhanced the business climate by making it easier for companies to operate and reducing barriers to investment. Competitive federalism, which allows Indian states to implement reforms independently, has also helped fuel growth, while the reduction of restrictions on foreign direct investment (FDI) had drawn global attention and capital to India’s markets.
However, Pereira identified education and skill development as key areas requiring improvement, particularly in terms of quality and access. Despite recent progress, he stressed the significance of continuing to bridge regional disparities and upgrade skills to further enhance India’s business environment. He said, ‘These efforts would help improve productivity and create more inclusive growth’.
Pereira urged ongoing reforms to reduce informality, expand social protection, and simplify regulations, including licensing procedures. He also encouraged further streamlining of the tax system to increase investment attractiveness. As India advances its reform agenda, it is expected to remain an appealing destination for both domestic and foreign investors, according to industry expert Pereira. He emphasized that India’s growing capabilities in key sectors, particularly Information, Communication, and Technology (ICT), will play a critical role in shaping the country’s future.
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