India needs to expedite its structural reforms to transition into a high-income country, according to World Bank Chief Economist Indermit Gill. Speaking at the Confederation of Indian Industry’s (CII) Global Economic Policy Forum 2024, Gill emphasized the need for India to prioritize certain key areas, including innovation and productivity enhancement, to achieve its goal of becoming a high-income nation. He stressed that fostering the growth of large companies would be essential, as they often act as engines for innovation.

Gill highlighted three major structural inefficiencies within India’s economy that need urgent attention:

1. Underutilization of Capital: There is a need to curb the activities of unproductive enterprises and redirect resources to more efficient organizations.

2. Underutilization of Talent: Specifically, the underuse of women’s talents in the workforce needs to be addressed.

3. Energy Efficiency: India ranks among the countries with the highest energy inefficiency rates, and more effective use of energy is crucial for sustaining growth.

Gill also noted that while global economic growth is slowing, even developed economies have seen a decline in their growth rates over the past two decades. To achieve rapid development, he suggested that India should leverage periods of economic crises as opportunities to implement structural reforms.

Private Sector Key to India's Growth, Says Report

Meanwhile, in line with the World Bank’s suggestions, several reports emphasize the role of private sector partnerships in India’s growth. A recent report by Knight Frank India, a global real estate consultancy, stated that India will require $2.2 trillion in investment to develop its infrastructure and reach a $7 trillion economy by 2030. The report also projects a compound annual growth rate (CAGR) of 10.1% between 2024 and 2030, provided the necessary investments are made.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted that the Indian government has increased its budget allocation for infrastructure development in recent years. This has resulted in improved logistics performance, with India’s ranking in the Logistics Performance Index rising from 54th in 2014 to 38th in 2023.

Baijal stressed that the private sector's role in economic and infrastructure growth is crucial but remains limited. He called for more proactive measures to attract private investment, which is vital for sustained, long-term economic growth.

However, the report cautioned that an overreliance on government expenditure for infrastructure development could jeopardize fiscal deficit targets. The share of private sector participation in infrastructure development has decreased significantly, from 46.4% of total investments between 2009-13 to just 7.2% between 2019-23. The government’s target to reduce the fiscal deficit to 4.5% of GDP by 2025 aligns with efforts to boost private sector involvement.

By increasing private sector participation, the report suggests that India can redirect government spending towards other critical sectors such as healthcare, human capital development, and debt servicing, ultimately contributing to the country’s long-term economic growth.

 

 The tenure of the current Reserve Bank of India (RBI) Governor, Shaktikanta Das, is set to conclude on December 10. Das, who took office as the 25th RBI Governor in December 2018, has served more than the usual five-year term, surpassing the tenure of his predecessor, Urjit Patel. He was reappointed for a second term in 2021. A retired IAS officer from Tamil Nadu’s 1980 batch, Das has held various key positions in the Indian government, including Secretary in the Ministry of Finance and Secretary in the Revenue Department. He also served as the Chief Secretary for the Tamil Nadu government and worked in several capacities at the World Bank and ADB.

Das, a graduate and post-graduate in History from St. Stephen’s College, Delhi University, recently made headlines for being named as one of the Top Central Bankers globally for 2024 by Global Finance. His leadership, particularly during the economic challenges posed by inflation and growth slowdown, has garnered considerable acclaim.

Sanjay Malhotra, a 1990 batch IAS officer from the Rajasthan cadre, has been appointed as the new RBI Governor. Currently serving as the Secretary of the Department of Revenue, Malhotra will take over from Das on December 11. The Cabinet Appointment Committee has approved his appointment, which will be effective for a three-year term.

Malhotra brings over 33 years of experience in critical areas such as finance, taxation, power, information technology, and mining. His appointment comes at a pivotal time, with the economy facing challenges in controlling inflation and boosting economic growth.

Adelaide: Australia secured a commanding 10-wicket victory over India in the second Test, leveling the five-match series 1-1. After a stunning performance in the first Test, India struggled in both batting and bowling in the second day-night encounter, which ended in record time.

Australia, putting up an exceptional all-round display in both batting and bowling, had India on the back foot from the start. Batting first, India managed just 180 runs, with Australia responding with 337, gaining a 157-run lead. India’s second innings saw them collapse for just 175, setting Australia a target of 19 runs. The hosts easily chased down the target, finishing with no wickets lost, as openers Usman Khawaja (9*) and Nathan McSweeney (10*) remained unbeaten.

India’s second innings collapsed under pressure. Starting the day on 128/5, India lost their remaining five wickets for just 47 runs. Rishabh Pant was dismissed for 28, followed by Ashwin (7), Harshit Rana (0), Nitesh Reddy (42), and Mohammed Siraj (7). Nitesh Reddy top-scored for India with 42 runs from 47 balls.

Australia’s bowling was led by captain Pat Cummins, who took 5 wickets. Scott Boland claimed 3 wickets, and Mitchell Starc added 2 more. Travis Head, who scored a century in Australia’s first innings, was named Player of the Match for his outstanding contribution. The third Test will be held in Brisbane from December 14.

Australia’s women’s cricket team has posted a formidable total in the second match of the three-match ODI series against India, with an impressive score of 371/8 in their allotted 50 overs. Batting first, the Australian side was powered by stellar centuries from Georgia Wareham (101) and Ellyse Perry (105).

Both players anchored Australia’s innings, with contributions also coming from Ffion Litchfield (60) and Beth Mooney (56), ensuring that the hosts set a daunting target for India.

For India, Saima Thakur was the standout bowler, claiming 3 wickets, while Minnu Mani picked up 2. Priya Mishra, Deepti Sharma, and Renuka Thakur Singh all took one wicket each in a challenging bowling effort.

With the target set, India will need a strong chase to level the series.

Adelaide: India is on the back foot in the second Test against Australia at Adelaide Oval, with the hosts showcasing complete dominance on day two of the match. Australia, led by star batter Travis Head, amassed 337 runs in their first innings, securing a vital 152-run lead over India. Head's brilliant knock of 140 off 141 balls, including 17 fours and 4 sixes, anchored Australia's innings.

After India’s initial struggle, their batting woes continued into the second innings. By the end of day two, India had lost 5 key wickets for just 128 runs in 24 overs. Rishabh Pant (28 not out) and Nithish Reddy (15 not out) remain at the crease, with India still trailing by 29 runs. Australian pace trio Pat Cummins (2/33), Scott Boland (2/39), and Mitchell Stark (1/49) wreaked havoc on India’s top order.

On day one, Australia had started with a score of 86/1, losing two quick wickets early in the day—Marnus Labuschagne (64) and Steve Smith (2). However, Head, in partnership with Labuschagne, provided stability, with the duo adding 65 runs for the fourth wicket. Despite India's efforts, including a breakthrough by Bumrah (4/61), Head's aggressive batting continued, culminating in his century off 111 balls.

In response, India’s top order crumbled once again. After losing KL Rahul (7) early, Yashasvi Jaiswal (24) and Virat Kohli (11) followed suit. Shubman Gill, who made 28, fought back briefly before being dismissed by Stark. With skipper Rohit Sharma (6) also failing to make an impact, India’s hopes rest on Pant and Reddy to deliver a fightback in the third innings.

Summary of scores:

India First Innings: 180 all out
Australia First Innings: 337 all out (Head 140, Labuschagne 64, Bumrah 4/61)
India Second Innings: 128/5 (Pant 28*, Reddy 15*, Cummins 2/33, Boland 2/39)