Explain five potential sources for faster economic growth inIndia suggested in this news clip.
- One suggested source of increased economic growth is increased infrastructure investment. Infrastructure includes factors such as roads, ports, railways, and electricity transmission. Another suggestion is to increase the number of judges, strengthen the legal system, and improve governance. However, while a seemingly simple suggestion, this process is likely to wind up politically quite difficult. A third suggestion mentioned in the Goldman Sachs’ report is to raise education achievement. This suggestion, while not a short-term fix, would be quite powerful at raising India’s long-term growth. Another source to increase economic growth is to increase productivity in agriculture. This suggestion, however,is not well detailed; in particular, it is much easier to suggest raising productivity than to actually do so. Finally, two possibility related suggestions are to lower inflation and limit government expenditure. Lowering inflation will help make the price system more efficient while reigning in government expenditure will allow more resources to be allocated by the market,which is likely a more efficient mode of allocation.