India: Strong growth raised incomes and reduced povertyStaff Writer | March 1, 2017
The Indian economy is expanding at a fast pace, boosting living standards and reducing poverty nationwide.
Living in India The latest OECD Economic Survey
The latest OECD Economic Survey of India 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, presented in New Delhi by OECD Secretary-General Angel Gurría and India’s Secretary Economic Affairs Shaktikanta Das, hails India’s recent growth rates of more than 7 percent annually as the strongest among G20 countries.
It identifies 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.
Recent changes in India’s federalism model have given states more freedom and incentives to modernise regulations and tailor public policies to local circumstances.
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 on labour regulations and land laws, could add to the reform momentum.
Raising living standards in poorer states will require increasing productivity in the agricultural sector.
With employment expected to gradually shift away from the agricultural sector, urbanisation 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. ■