The ongoing key reforms such as sops for manufacturing, easier labour laws, wooing FDI inflows and privatisation will help improve productivity and support long-term growth at 7.5-8 per cent levels, which if played out well, can help India contribute 15 per cent of global GDP growth by FY2026, says a report.
According to a report pencilled by the India economist at UBS Securities, Tanvee Gupta Jain, the country has the lowest manufacturing costs among peers, even though China retains significant ecosystem advantages and despite that India and Vietnam appear most likely to benefit from a shift out of China.
“The incentives for manufacturing, easier labour laws, encouraging FDI inflows and privatisation will help improve productivity and support long-term growth closer to the upside scenario of 7.5-8 per cent. If this played out well, we estimate that India could contribute 15 per cent to global GDP growth in the next five years ending FY26, Gupta-Jain said without quantifying the present share.
Source: livemint
