Boosting Labour Productivity Essential for India's Ambitious Growth Plans: NITI V-C Suman Bery

NITI Aayog Vice-Chairman Suman Bery emphasized the importance of sustained labor productivity growth in achieving India's goal of becoming a $30-trillion economy by 2047. He noted that India's labor force is three times that of the US and that the country's labor productivity is lowest among G20 nations. Bery advocated for diversifying employment sources, citing that 44% of India's population is still in agriculture, and that increasing labor productivity is crucial to meet the country's aspirations for growth.

NITI Aayog Vice-Chairman Suman Bery underscored the critical role of sustained labor productivity growth in achieving India's goal of becoming a $30-trillion economy by 2047. Bery highlighted that India's labor force is three times that of the United States, yet the country's labor productivity is the lowest among G20 nations [2]. He emphasized that improving labor productivity is essential to meet the country's aspirations for economic growth.

Bery noted that 44% of India's population is still engaged in agriculture, which contributes to the low labor productivity. He advocated for diversifying employment sources and increasing productivity in both agriculture and high-value sectors such as manufacturing and services. According to Bery, this transition will lead to an increase in productivity and will also result in higher real incomes for the population [1].

The Vice-Chairman also stressed the importance of leveraging global expertise while developing local innovations. He suggested that India should diversify its supply sources to reduce dependency on specific suppliers and integrate its medium enterprise sector with the global value chain to boost manufacturing [2]. Additionally, Bery emphasized the need for market reforms and skill development initiatives to enhance labor productivity.

Bery highlighted that improving labor productivity is crucial for India to leverage its demographic dividend. He noted that rising labor productivity leads to faster growth in real incomes, which can address the increasing preference for government employment [1]. The Vice-Chairman also pointed out that India has maintained an average growth rate of 6.5% for 30 years, indicating the country's institutional and policy-based resilience [2].

In conclusion, NITI Aayog Vice-Chairman Suman Bery's emphasis on sustained labor productivity growth underscores the importance of this metric in achieving India's economic ambitions. By diversifying employment sources, leveraging global expertise, and implementing market reforms, India can enhance its labor productivity and accelerate its economic growth trajectory.

References:
[1] https://timesofindia.indiatimes.com/business/india-business/indian-economys-size-more-than-half-of-us-in-ppp-terms-stands-at-15-trillion-says-niti-aayog-vice-chairman/articleshow/121488865.cms
[2] https://economictimes.indiatimes.com/news/india/indias-labour-productivity-is-lowest-among-g20-nations-niti-aayog-vice-chairman-suman-bery/articleshow/121485266.cms