인도·남아시아

For India to become an advanced economy by 2047, productivity-led sustained high growth would require strategic planning of ways to mobilise adequate financial resources, both domestic and foreign, and their proper allocation to productive sectors. The decline in saving and investment rates in the country in the post-global financial crisis (GFC) period, and relatively low total factor productivity (TFP) growth (as per the India KLEMS data) highlight the importance of both resource mobilisation and their productive deployment for achieving sustained high growth in the future. Emphasising that technology and efficiency of resource allocation are the two key drivers of productivity, Mohommad et al (2021) found the magnitude of misallocation of resources across sectors and states in India’s formal manufacturing sector to be sizeable. On the potential of efficient resource allocation as a driver of ­higher TFP growth, past empirical estimates for India could provide useful insights. A gross value added (GVA) growth ­accounting decomposition suggests that resource reallocation effects contributed to 8% of GVA growth in India during 2011– 2019, and reallocation of resources from low-to high-productive sectors accounted for 63% of aggregate productivity growth during 2001–19 (Sengupta and Chattopadhyay 2023). Significant cost and time overruns in large public sector infrastructure projects (as could be seen from the regularly updated related data released by the Ministry of Statistics and Programme Implementation [MOSPI]) appear to have also lowered the social return on investment compared with the expected return assumed at th