Better infrastructure required for growth in India: WTO
24 May 2007
London: The infrastructure sector continues to cripple India's growth potential, the World Trade Organisation said in a report on Wednesday.
WTO said, "India's economic performance has continued to be impressive since 2001-02 and growth has been particularly rapid since 2003-04 averaging over 8.5 per cent with over 9 per cent expected for 2006-07," the WTO said it's Trade Policy Review on India.
However, if India's high rates of economic growth are to be sustained, reforms need to be deepened, in particular to address infrastructure bottlenecks such as transport and electricity, which continue to constrain growth, it added.
India's robust economic growth in the recent past has been largely due to unilateral trade and structural reforms, in particular in services, according to the WTO Secretariat report.
Rapid economic growth has also resulted in an improvement in social indicators such as poverty and infant mortality, it said.
Continued structural reform, the report notes, together with greater investment in physical and human capital would also help to generate much needed productive employment for new entrants to the labour force, it said.
