Further reforms necessary

Further reforms are now necessary to maintain strong growth and ensure that all Indians benefit from prosperity, according to a new report from the #Organization of Economic Cooperation and Development (OECD).

The agency suggested this in a survey report, noting the Indian economy was expanding at a fast pace, boosting living standards and reducing poverty nationwide.

The latest OECD Economic Survey of India 2017 finds that the acceleration of structural reforms and the move toward a rule-based macroeconomic policy framework are sustaining the country’s longstanding rapid economic expansion.

The Survey was launched in New Delhi 28 Feb 2017 by OECD Secretary-General #Angel Gurria and Secretary, Department of Economic Affairs, Ministry of Finance, #Shaktikanta Das.

It hails India’s recent growth rate of more than 7 percent annually as the strongest among G-20 countries.

But it also identified priority areas for future action, including continuing plans to maintain macroeconomic stability and further reduce poverty, additional comprehensive tax reforms and new efforts to boost productivity and reduce disparities between India’s various regions.

Speaking on the occasion, Gurria said that India provides a welcome counter-point to a global economy that has been under-performing for years.

He noted that India has been top performer and reforms are bearing fruit, growth is strong and other macroeconomic indicators are improving.

But Gurria said that maintaining the reform momentum will be critical to boosting investment and creating the quality jobs needed to ensure strong and inclusive growth for future generation, with all segments of society benefitting from it.

The ease of doing business in India has improved, acknowledged the report.

The Government is well aware about the challenges before it and there is work in progress on all of the recommendations enshrined in the Survey, said Das.

The Survey pointed out that ranking states on the ease of doing business is opening a new era of structural reforms at the state level and will help unleash India’s growth potential.

Further benchmarking among states and strengthening the sharing of best practices, particularly labor regulations and land laws could add to the reform momentum.

Raising living standard in poorer states will require increasing productivity in the agricultural sector, said the report.

With employment expected to gradually shift away from the agricultural sector, urbanization will gather pace.

Thus, better urban infrastructure will be needed to fully exploit cities’ potential for job creation, productivity gains and improving the quality of life, said the OECD survey. fii-news.com