India’s Economic Resilience: NITI Aayog’s Suman Bery Urges Continued Vigilance Against Complacency

Pointing out the importance of labor productivity in achieving the “Viksit Bharat” dream, expert Bery emphasized that rising aspirations in India are not matched by improvements in productivity. He noted that while India’s economy has significant potential, its growth is hindered by slow productivity gains.

Currently, India’s economy is about half the size of the U.S. economy when adjusted for purchasing power. However, India has three times the labor force. Bery suggested that this workforce should be harnessed better to drive economic growth and create more jobs. He mentioned that many countries, including the UK and Canada, face similar challenges with productivity stagnation. Although productivity in India is increasing, it still lags behind countries like China and those in the ASEAN region.

Bery outlined two key steps to improve productivity: moving people out of agriculture and transitioning them into industry and services. This shift is crucial not just for enhancing agricultural productivity but also for boosting industrial output. Unfortunately, this transition is moving slowly in India. The NITI Aayog is developing strategies to address these obstacles.

Industrialization remains a significant challenge as well. Bery suggested that India can learn from nations like China, Japan, and South Korea, even though each country must navigate its own unique path.

He advocated for a balanced approach that combines self-reliance (atmanirbharta) with global engagement to maintain competitiveness. Emphasizing the role of small and medium industries, Bery pointed to Germany as a model for India. He also highlighted the importance of forming free trade agreements and exploring high-value sectors to strengthen India’s position in the global economy.

Recent surveys indicate that many Indians view labor productivity as a key factor for economic success. More than 70% of respondents in a nationwide poll believe that investing in skills and education is essential for improving productivity and job creation.

Overall, Bery’s insights remind us that while challenges exist, opportunities abound for India to boost its productivity and achieve its ambitious growth goals. By leveraging its labor force effectively, India can pave the way for a brighter economic future.

For more information about economic policies and their impact, check out the NITI Aayog report.

Source link

Suman Bery ,NITI Aayog , Viksit Bharat ,CII Annual Business Summit