India’s 8% growth is a dream figure, but sustained reforms are crucial for jobs: Gita Gopinath

India’s recent economic growth of over 8% is a “dream figure” for most countries, but maintaining this momentum will require continued structural reforms, job creation and skills development, said Gita Gopinath, professor of economics at Harvard University, on the sidelines of the Times Network India Economic Conclave 2025.Gopinath, after his meeting with Finance Minister Nirmala Sitharaman, said India’s growth story stands out globally because of the strength of its fundamentals, but long-term success will depend on deeper reforms to support employment and productivity. “Sustainable reforms, ease of doing business, deregulation and workforce training will be key to keeping growth high and inclusive,” she said, adding that the Finance Minister has set out a clear vision on these priorities.

Infrastructure and reforms are helping India deal with geo-economic turbulence

Amid heightened geopolitical tensions and global trade wars, Gopinath said India has managed to remain resilient by strengthening its public infrastructure. “India has done well in improving both its physical infrastructure and its digital public infrastructure, and together these have been powerful growth engines,” she said.

She highlighted the Goods and Services Tax (GST) reforms, including recent simplification measures, and the implementation of labor laws as steps that have taken the economy in the right direction. A favorable monsoon has also supported growth, she noted, helping offset the burden of higher tariffs imposed by the US. “But to continue to grow, India must continue with domestic reforms,” Gopinath said.

From policymaking by the IMF to academic research

Reflecting on her transition from the International Monetary Fund (IMF) to academia, Gopinath said the two roles offer very different perspectives. “At the IMF, I was deeply involved in policymaking and working with countries on growth and macro stability. At Harvard, I have more time to interact with students and focus on research, which is a luxury I didn’t have before,” she said.

Universities, skills and scale

On higher education, Gopinath noted that the Indian university ecosystem is rapidly expanding, with an increasing emphasis on liberal arts and interdisciplinary learning. “A lot is happening in higher education in India, but the scale of the challenge is enormous. India will need many more institutions and skilled teachers to train the next generation,” she said.

At the same time, she said lessons are also being learned from India globally, citing the Unified Payments Interface (UPI) as a standout example. “When people around the world think of India, they think of UPI. India’s digital identity and payments infrastructure has really put it on the global stage,” Gopinath said.

Role of dialogue in an uncertain world

Stressing the importance of platforms like the India Economic Conclave, Gopinath said informed dialogue is essential in a rapidly changing and uncertain global environment. “Sharing ideas and wisdom from diverse participants can only be beneficial – for India and for the world,” she said.