India must make growth employment-intensive, not just fast: Ex-RBI chief

Sustaining economic growth of 7 per cent or more will require stronger private investment, labour-intensive manufacturing, better human capital and deeper integration into global value chains, former RBI Governor D Subbarao has said.

Subbarao also said that the challenge is not merely to grow fast, but to make growth productive, employment-intensive and resilient.

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

Recently, the World Bank raised India's GDP growth forecast for the current fiscal year to 7.1 per cent, up 0.5 percentage points from its April projections, supported by robust domestic demand and strong exports, despite global headwinds.

"Sustaining growth of 7 per cent or more will require stronger private investment, labour-intensive manufacturing, better human capital and deeper integration into global value chains..