BENGALURU: India needs to strengthen its manufacturing activities as well as reform labour laws to ensure good growth, Organisation for Economic Co-operation and Development's chief economist Catherine L Mann said on Monday.
"Negative exports, deteriorating competitiveness and structural challenges, like labour laws and land acquisition, along with poor infrastructure quality and uncertainty to financing it and building it are acting as barriers to India's growth," Ms Mann said.
Manufacturing was indeed the key to India's future, she said while presenting the findings of the 'Third OECD Economic Survey of India', hosted by the Centre for Public Policy at IIM-B in association with Paris-based think tank OECD.
"Modernising labour laws is crucial to encourage employment formalisation and to reduce labor market segmentation, gender bias and income inequality. While the services sector in India looks robust, manufacturing does not," she was quoted as having said by IIM-B in a release.
The release said Ms Mann offered a brief description of the aims and goals of the OECD and listed the challenges, as examined by the survey, to India's growth story.
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