At the World Economic Forum (WEF) in Davos 2025, former RBI Governor Raghuram Rajan praised the Modi government for its impressive infrastructure development. But he quickly raised a crucial concern: job creation. While India has made strides in building infrastructure, Rajan pointed out that the real challenge lies in creating enough jobs for the growing population.

He highlighted that while high-end jobs are plentiful, medium and lower-level job opportunities are still lacking, especially for those looking to move away from agriculture. "India's economy is growing at 6%, which is good compared to many other countries, but it’s not fast enough to provide jobs for everyone," he said.

Rajan emphasized that India needs to grow faster to ensure a brighter future for its people. The upcoming budget will likely shed more light on how the government plans to tackle this issue.

On the other hand, IMF Deputy Managing Director Gita Gopinath shared a positive outlook, calling the recent GDP slowdown temporary and forecasting a growth rate of 6.5% for the fiscal year. She also highlighted strong rural consumption as a key factor in India's recovery.

But when asked about India’s challenge in attracting investment amid fierce competition from the US, she noted that the US remains an attractive destination for foreign investment. She advised India to focus on domestic reforms, particularly in ease of doing business, infrastructure, and land acquisition, to create a more favorable environment for investment.

India's future hinges on its ability to create jobs, attract investments, and keep up the momentum of growth, let's hope the budget brings a clear roadmap to tackle these issues!