Increase productivity, invest in education and skills...

INDIA’s productivity or productivity per person compared to the peers has been low given the size of the economy or its labour force and the level of innovation or technology. The US’ nominal GDP is four times that of INDIA, even though, labor-force is smaller. INDIA, though, having a larger population and labour-force has been lagging behind due to it low education and skills base compared to the developed countries on which the productivity of the economy is dependent. The Government of INDIA has now realized that competitive markets would help lower the prices by the way of increasing the number of firms or competition or more supply. Therefore, in education and skill-development INDIA too needs to liberalize investment or entry of new firms. More education and skill development firms would lower the prices of education and skills and increase employability. It’s Make in INDIA program, also, could not succeed without the right skills to add to the productivity of the Industry. INDIA has recognized the importance of foreign-capital to finance it goals. The government is trying to woo foreign investment in agriculture and manufacturing, but this time it also needs to increase foreign investment in the world-class education and skills. The Make in INDIA invites the foreign firms to invest in production with cheap wages in order to be competitive, but, without an educated and skilled workforce the firms would find it difficult to investment in INDIA. Foreign firms are provided entry into the economy to increase competition for the domestic producers which was earlier considered against the domestic industry could also help us import new-skills and technology. Moreover, more FDI in education and skills development would also help us spreading domestic skills-base and productivity...