Recovery - this time will be harder
Where will growth of output and employment come from in the years ahead? In the last 15 years, services have been the main engine of overall economic growth. Perhaps inevitably, that engine has begun to sputter and may be hard to reactivate.
The prolonged neglect of manufacturing has to be swiftly reversed and supportive policies deployed. The recent rupee depreciation offers substantial encouragement to import substitution and exports. But to fully exploit these opportunities, it is vital to have supportive infrastructure, tax and labour market policies. Read More