Eminent economist believes Indian needs multiple reforms for USD 7 trillion economy

India needs reforms on multiple fronts, including economic and administrative, to become a USD 6-7 trillion economy by 2030, eminent economist Ajay Chhibber said Tuesday.

Chhibber, a former World Bank economist, further said India is under-spending on education and health sectors, which need increased expenditure.

"To achieve the target of USD 6-7 trillion economies by 2030, India needs to address challenges of competitiveness to compete in the global market on many fronts with the economic and administrative reforms along with a transformation in health, education, labour, finance, police and judicial reforms," he added.

India is under-performing hugely in tourism and mobility sectors but these industries have the potential to create immense employment opportunities, he noted.

Chhibber said given the current macroeconomic situation and high-interest rates, there is a need to reduce repo rate by 100 basis points by the RBI.

In 2017, India became the sixth largest economy with a Gross Domestic Product (GDP) of USD 2.59 trillion, relegating France to the seventh position, according to the World Bank data.

Chhibber is currently a visiting scholar at the Institute of International Economic Policy, George Washington University, USA.