India needs to implement significant reforms to revive its flagging economic growth and put more young job seekers to work, according to a former central bank governor.

Growth in India's economic output slowed to 4.5% in the three months that ended in September, which marked the slowest pace of expansion in six years.

There's emerging evidence that the economy might be picking up slowly, but growth level around 5% is insufficient for India, Raghuram Rajan told CNBC's "Street Signs" on Monday.

"We have a lot of young people entering the labor force. We need to provide jobs for them and even if much of the growth is job-oriented, 5% simply doesn't cut it," Rajan, who was the governor of the Reserve Bank of India between 2013 and 2016, said.

India's industrial production grew in November, beating expectations. Along with other indicators like factory activity data, auto sales, and bank credit, some experts said growth likely began to inflect in the final three months of 2019.

Still, in recent quarters, India's growth did not result in sizeable job creation as the country faced a number of challenges including a troubled financial sector and weakness in corporate earnings and profits that likely weighed on business investment.

"India needs significantly more growth, which means significant reforms, and I think the problem in the last 15 years or so, is the reform momentum has slowed considerably," Rajan said.

He added that South Asia's largest economy needs to revive itself to become an attractive destination, particularly for companies that are shifting their supply chains out of China and into countries such as Vietnam.