'Improve infrastructure for high GDP growth'
India will have to upgrade its infrastructure, undertake labour reforms, reduce regional inequality and improve farm and industrial productivity to sustain high economic growth rates, the World Bank has said.
By PTI |
NEW DELHI: India will have to upgrade its infrastructure, undertake labour reforms, reduce regional inequality and improve farm and industrial productivity to sustain high economic growth rates, the World Bank has said.
The country would also have to reduce the dependence of farm sector on monsoon and address the high fiscal deficits to more on a higher growth trajectory, World Bank South Asia region Chief Economist Shantayanan Devarajan and Sector Manager (Poverty Reduction) Ijaz Nabi said in a report.
While observing that poor infrastructure did not impede growth of internet-enabled services, it noted competitiveness of trade in goods would be affected by inefficiencies and bottlenecks in road, rail networks and ports.
The regulatory framework governing factor markets, especially the labour market, needs to be reviewed to lowre transaction costs, the report said, adding India's large scale manufacturing sector generated "surprisingly few jobs".
India cannot sustain inequalities in living standards across regions, the duo said, adding the growing income gap between the successful southern states and the lagging north would have to be bridged. This would require upgrading health and education services, they said.
The economists also pitched in for second generation reforms, with focus on regaining productivity growth. In farm sector, this would mean encouraging farmers to shift to higher productivity crops, while in manufacturing it would mean upgrading products to compete in international markets.
The country would also have to reduce the dependence of farm sector on monsoon and address the high fiscal deficits to more on a higher growth trajectory, World Bank South Asia region Chief Economist Shantayanan Devarajan and Sector Manager (Poverty Reduction) Ijaz Nabi said in a report.
While observing that poor infrastructure did not impede growth of internet-enabled services, it noted competitiveness of trade in goods would be affected by inefficiencies and bottlenecks in road, rail networks and ports.
The regulatory framework governing factor markets, especially the labour market, needs to be reviewed to lowre transaction costs, the report said, adding India's large scale manufacturing sector generated "surprisingly few jobs".
India cannot sustain inequalities in living standards across regions, the duo said, adding the growing income gap between the successful southern states and the lagging north would have to be bridged. This would require upgrading health and education services, they said.
The economists also pitched in for second generation reforms, with focus on regaining productivity growth. In farm sector, this would mean encouraging farmers to shift to higher productivity crops, while in manufacturing it would mean upgrading products to compete in international markets.
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