Panagariya stresses on engagement of workforce in large-scale industries

Bhubaneswar: There was a rapid shift of workforce from agriculture to industry in fast growing nations which led to a sharp reduction in poverty in fast growing economies, said Niti Aayog vice chairman Arvind Panagariya.

Addressing OTV’s annual convention ‘Foresight 2016’, the eminent economist said -“Rapid growth in India was achieved very late as compared to other countries like Korea, Singapore, Taiwan. Upto 80% of India’s workforce is in small & medium industries and this trend has to change”.

Giving example of China’s growth rate, he emphasized the large scale industries in taking the economy forward.
“Look at China’s clothing, textiles and leather industries but China is mostly known for its electrical and electronics products. Lots of these industries are driven by large scale firms which operates in world market, Panagariya pointed out.

“When large firms are absent, the small and medium firms are very low productivity firms”, he added.

The Niti Aayog vice chairman said workers are moving out of agriculture to manufacturing units at high wage rate and that is why the manufacturing units grew rapidly in China.

Lauding Gujrat’s initiative in applying China like strategy, he said most of the exports in the country are carried out by the special economic zones of Gujrat.

“China like strategy is succeeded and probably it is like in Gujrat. Special Economic Zones (SEZ) in Gujrat export about 45% of total goods exported by other special economic zones of the country”, Panagariya.