At the Kautilya Economic Conclave held in New Delhi from October 4 to 6, Álvaro Santos Pereira, Chief Economist of the Organisation for Economic Cooperation and Development (OECD), shared his optimistic outlook on the Indian economy. He described India as a “champion of growth” within the G20 and globally, while emphasising that further reforms, particularly in education and skill development, are essential to sustain and accelerate progress.
Pereira praised the significant 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) has 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 importance of continuing to bridge regional disparities and upgrade skills to further enhance India’s business environment. These efforts, he said, 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 competitiveness and 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 nation’s future.
Pereira also pointed to the Indian government’s focus on infrastructure development, with programs like “Make in India” aimed at boosting manufacturing and self-reliance. These efforts are expected to strengthen India’s position as a global economic powerhouse, driving sustained growth and investment opportunities.
Economic expert Pereira highlighted the stark contrast between India’s thriving growth outlook and China’s decelerating economy. With India expected to grow at a robust rate of around 7% in the coming years, Pereira underscored the nation’s positive trajectory, attributing it to a reform-driven, business-friendly environment.
Meanwhile, China faces mounting challenges, particularly within its real estate sector, which has shown signs of weakness. Additionally, subdued consumer demand continues to slow its overall growth. Pereira pointed out that these hurdles could lead to economic turbulence for China in the future.
However, India’s momentum is expected to remain strong. According to Pereira, as long as India continues on its current path of economic reforms and focuses on creating an inviting landscape for investments, the country will retain its status as a global growth leader. This positions India to solidify its role as a G20 powerhouse in the years to come, driven by its reformist vision and economic resilience.
