Overall, India's strong pool of skilled, English-speaking graduates would aid in expansion of the country's services sector, says report
India is ranked 14th among 24 countries in the creative productivity index (CPI), highlighting the need for further investments in physical infrastructure and human capital, according to a report by the Asian Development Bank (ADB) and Economist Intelligence Unit released on Friday.
The report, Innovative Asia: Advancing the Knowledge-based Economy, ranks Japan and the Republic of Korea as countries most efficient in the Asia and Pacific region at turning creative inputs into tangible innovation. Myanmar, Pakistan, and Cambodia, by contrast, are ranked as the least efficient innovators.
It says that despite recent productivity gains, India still lags behind in terms of output because of low agriculture productivity. This indicates the need for rural innovations, the report says.
“By leveraging its strengths in human capital and ICT (information and communications technology) services, India can become a major global knowledge-based economy,” said Bindu N Lohani, ADB Vice-President for Knowledge Management and Sustainable Development. “But making this a reality will require many steps like putting in place supportive laws, improving infrastructure, dismantling barriers to trade and investment, upskilling the labour force, boosting research and development spending, and providing innovative financing options for small businesses and entrepreneurs.”
The report also highlights several challenges, including labour laws, lower rate of urbanisation considering the years of schooling, and technical and vocational enrolment of students in secondary school.
ADB also highlights “considerable barriers to doing business and high tariffs impeding trade” in India in another study on knowledge-based economy. “The limited trade diversification in terms of both a narrow export basket and geographic trade partners has constrained progress in international markets,” says ADB in the study.
India has built pockets of knowledge-based growth, but has not yet translated this into a broader economic model, says the report.
Overall, India’s solid pool of skilled, English-speaking graduates would aid in expansion of the country’s services sector, says the report.
|Source: Innovative Asia: Advancing the Knowledge-Based Economy|
We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.
Comments are moderated and will be published only after the site moderator’s approval. Please use a genuine email ID and provide your name. Selected comments may also be used in the ‘Letters’ section of the Down To Earth print edition.