Even though India’s economy keeps growing significantly, investment shares of GDP are relatively low. India should increase investments to keep the dynamics according to OECD.
India‘s economy has been though some successful reforms which focused on taxation simplification, business deregulation and infrastructure improvement. These steps already brought positive outcomes, yet according to OECD will not be enough for economic growth of second most populated country in the world. India is expecting more modernization especially in the field of education, public services improvement and creating of highly qualified jobs.
India should increase investment shares on its GDP which is high (almost 30 %) in comparison to economies of developed countries, yet the value is below average for developing countries. India is left behind China and Indonesia in that matter. In both countries the GDP is more than 30 % and in case of China even more than 40 percent.
Low investment level in India became evident already. OECD warns especially about permanent weak level of employment in industries with added value which affects rural stagnation and drop between earnings in the countryside and in cities.