India has been asked to develop a livelier and diverse manufacturing base to attract interests from overseas investors. The country also requires increasing export to ride growth wave in future. The suggestion has been proposed by Asian Development Bank.
India is certainly zooming away in the wake of ongoing developments in every sector. This adds to its need to restructure economy to generate more job prospects and undertake social issues to make the high growth more inclusive.
Disturbing factors like gender gaps, rural-urban differences are still prevailing in the country as shown by the indicators of education and health for the weaker section of society. There is a dire need to spend largely on improving health and education standards in rural areas to abridge the gap between rich and poor, says ADB President Haruhiko Kuroda.
The programme of Bharat Nirman is expected to help the country to take up its inequality challenge thereby increasing the quality and reach of infrastructure. It will further help to create productive farm and non farm employment prospects.
There is no uniformity in wages and the incentives for mechanization are limited, and productivity growth is hampering a lot because of this, says Kuroda. Improper water supply is another major block in India which needs to be managed effectively to add catalyst in development of rural sector.
Also, India requires establishing suitable market institutions and stronger links between agro community and the consumers of farm products. In addition, India's manufacturing sector, representing 16 per cent of total GDP, is next in the list to make improvements if want to boost the overall growth rate.
