India's limited trade diversification has constrained progress in international markets: Study
Updated: Sep 12, 2014 04:45:49pm
New Delhi, Sept 12 (KNN) Shift to innovation-based growth would help countries avoid the middle-income trap and also address rising income inequalities, said a report adding that limited trade diversification in terms of both a narrow export basket and geographic trade partners has constrained progress in international markets.
According to a joint report by the Asian Development Bank (ADB) and Economist Intelligence Unit released today, India is ranked 14th out of 24 countries in the Creative Productivity Index (CPI), reflecting the need for further investments in physical infrastructure and human capital.
Despite recent productivity gains, India still lags behind in terms of output, with a low agriculture productivity indicating the need for further rural innovations, the report said.
It also highlighted several challenges, including labour laws, lower rate of urbanisation considering the years of schooling, and technical and vocational enrolment of students in secondary school.
It stressed the need to have larger productivity gains in the agricultural sector.
Overall, India's solid pool of skilled, English-speaking graduates would aid in expansion of the country's services sector, said the report.
ADB also highlighted "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," said the report.
China and India, have built pockets of knowledge-based growth, but have not yet translated this into a broader economic model, it said.
Countries such as Bangladesh, Myanmar, and Laos have yet to really embark upon knowledge-based growth.
"A shift to innovation-based growth would help countries avoid the middle-income trap and also address rising income inequalities," added the report.
"As countries seek to innovate to avoid middle-income traps, all governments, especially those with limited resources, need to be sure that their investments boost both efficiency and productivity, benefiting their economies and people, and move to a knowledge-based economy," said vice president for Knowledge Management and Sustainable Development at ADB, Bindu N Lohani. (KNN/SD)
According to a joint report by the Asian Development Bank (ADB) and Economist Intelligence Unit released today, India is ranked 14th out of 24 countries in the Creative Productivity Index (CPI), reflecting the need for further investments in physical infrastructure and human capital.
Despite recent productivity gains, India still lags behind in terms of output, with a low agriculture productivity indicating the need for further rural innovations, the report said.
It also highlighted several challenges, including labour laws, lower rate of urbanisation considering the years of schooling, and technical and vocational enrolment of students in secondary school.
It stressed the need to have larger productivity gains in the agricultural sector.
Overall, India's solid pool of skilled, English-speaking graduates would aid in expansion of the country's services sector, said the report.
ADB also highlighted "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," said the report.
China and India, have built pockets of knowledge-based growth, but have not yet translated this into a broader economic model, it said.
Countries such as Bangladesh, Myanmar, and Laos have yet to really embark upon knowledge-based growth.
"A shift to innovation-based growth would help countries avoid the middle-income trap and also address rising income inequalities," added the report.
"As countries seek to innovate to avoid middle-income traps, all governments, especially those with limited resources, need to be sure that their investments boost both efficiency and productivity, benefiting their economies and people, and move to a knowledge-based economy," said vice president for Knowledge Management and Sustainable Development at ADB, Bindu N Lohani. (KNN/SD)
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