New Delhi, May 29 (IANS). NITI Aayog Vice Chairman Suman Berry said on Thursday that a continuous increase in labor productivity is necessary to realize the dream of developed India.
In his address at the CII Annual Business Summit in the national capital, Berry said that increasing labor productivity will lead to high value enhancement by taking advantage of unused capacity and increasing labor activity. This will help in increasing income, raising the standard of living of the country and taking advantage of the ability of unmatched demographics.
He further said that labor productivity in India is not improving at the expected pace. The size of the Indian economy in purchasing power equity is half of America size, while the size of the labor force is three times the size of America.
Our aim should be to take advantage of the labor force and create better employment to take the development of the economy to a higher level.
He said that countries such as UK and Canada have to face the problem of stagnation in productivity, while productivity in India is increasing, however, it is lower than in China and ASEAN.
Berry said, “India should adopt a mixture of self -reliance and global connections to remain competitive. We should pay more attention to small and medium industries of India like countries like Germany. Indian industries have successfully overcome the 1991 reforms and have gained confidence to effectively compete with the best industries in the world.”
Berry said that it is necessary to do FTA with business partners, enter high -value areas and diversify the sources of supply. Competition should not be limited to manufacturing only but it should also be increased to services.
-IANS
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