PrabhuNET.com

India’s economic growth can reach a sustainable 10 per cent and be spread more evenly across the country if the government pursues ambitious and wide-ranging economic reforms, Organisation for Economic Cooperation and Development (OECD) has said in a survey.

“The government’s target of reaching GDP growth of 10 per cent in 2011 is achievable if reforms continue,” the OECD said in its first economic survey on India released here on Tuesday, adding India is now the world’s third largest economy behind the US and China in terms of real prices and purchasing power.

The OECD survey identified labour reforms, infrastructure, need for fully operationalising Competition Commission and a modern bankruptcy law as major challenges for the country to sustain the growth rate.

The survey said the government should continue its programme of increased discipline in public spending, adding, they should be better targeted to help the poor.

“Privatisation of more publicly-owned firms should resume to help improve productivity and profitability,” the survey added.

Referring to infrastructure bottlenecks, the OECD survey said, “the country’s high rate of economic growth is at risk if infrastructure development does not increase and keep pace with demand.”

The survey also recommended reducing tax exemptions to allow more money to be transferred to fund public services in urban areas.

India is rocking ..!