Tells Centre to plug leakages, boost manufacturing sector.
Kaushik Basu
Hyderabad: India will continue to remain the world’s fastest growing major economy in 2016 as China heads towards a new normal of slower growth. “Roughly the ball park growth that India would see is 7-7.5 per cent. No matter where it is, the top end of it or high end, it will be the leader in major economies. This is not just in 2015, but 2016 as well. Of course, there are some smaller economies growing at a faster pace, but India will lead among major economies,” World Bank chief economist Kaushik Basu said here on Tuesday.
India surpassed China to become the fastest growing economy this year as Beijing tries to realign its economy towards consumption-led growth as against the export-led. Identifying the areas where the government can improve upon, Dr Basu said the government should stop leakages in social welfare schemes and reposition itself as manufacturing power.
“If you look at the data over the last 12 months, the manufacturing sector has not done well. But there is a great potential for the country in manufacturing sector because of the rising wages in China,” Dr Basu added.
The World Bank economist also wants India to focus on building on its intellectual capabilities as it would help the country in the long run. “India was one of the finest places to get educated in the 1960s-70s. But the ranking came down later,” he pointed out.
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( Source : deccan chronicle )
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