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Gita Gopinath, Deputy Managing Director of the International Monetary Fund (IMF), has outlined a roadmap for India to achieve its ambitious goal of becoming a developed nation by 2047. Her recommendations center on the need for a significant investment in human capital, infrastructure, and policy reforms. Gopinath emphasizes that India must prioritize developing a highly skilled workforce, acknowledging the current mismatch between available skills and industry demands. This requires bolstering education and training programs to equip the workforce with the skills needed for a rapidly evolving economy.
Gopinath advocates for comprehensive tax reforms to broaden the tax base and reduce leakages. She suggests increasing tax revenue from long-term capital gains and property taxes, while simplifying the structures of personal income tax and goods and services tax. To enhance its position in global supply chains, she urges India to reduce import tariffs, noting that India's current tariff rates are higher than those of its peers. This move would not only facilitate trade but also attract foreign investment and boost economic competitiveness.
Beyond economic reforms, Gopinath emphasizes the importance of a robust infrastructure, including efficient judicial systems and a conducive regulatory environment. She stresses the need to strengthen institutions to improve the ease of doing business and attract foreign investment. Gopinath also highlights the critical role of women's safety in fostering a prosperous and inclusive society, recognizing its impact on economic participation and overall societal well-being. She acknowledges the advancements in technology and the potential for automation but warns against neglecting the need for safety nets and social security measures for workers impacted by these changes.
Gopinath's recommendations reflect a comprehensive understanding of the challenges and opportunities facing India. Her call for a skilled workforce, tax reforms, open trade, and robust infrastructure is essential for India to achieve its development aspirations. By addressing these areas, India can create an environment conducive to sustained economic growth, job creation, and a higher standard of living for its citizens.
Source: India must focus on skilled workforce to become developed by 2047: Gopinath