New PDF release: India: The Growth Imperative

This record is the made of a fifteen-month lengthy undertaking by means of the McKinsey international Institute, operating in collaboration with McKinsey's India workplace, at the monetary functionality of India.

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This file is the made of a fifteen-month lengthy venture via the McKinsey international Institute, operating in collaboration with McKinsey's India workplace, at the financial functionality of India.

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Taking GDP per capita as a measure of economic well-being, we have explained India’s level of output per capita through the differences in labour inputs (employment per capita) and labour productivity (the efficiency with which labour inputs are used to produce a certain level of output). 1 India has the lowest GDP per capita among the benchmark countries The best available measure to compare material living standards across countries is GDP per capita measured in Purchasing Power Parity (PPP) terms.

We studied the influence of three factors: ¶ Domestic competitive intensity: This refers to differences in the industry structure and the resulting competitive behaviour of domestic players. Other factors being equal, more competition puts more pressure on management to adopt more productive processes. Industries with high competitive intensity typically experience frequent entry and exit of players as well as changes in prices and profitability. ¶ Exposure to best practice: This includes competitive pressures from foreign best practice companies either via imports or through foreign direct investment (FDI).

6). They include: • Entry barriers: Regulations prohibiting or discouraging investment in certain services, products or players can lower the productivity of a sector. , licensing in dairy processing that prevents new private players from entering in certain areas). 11 • Competition distortions: Regulations can distort competition by subjecting players to differing rules. These include direct tax breaks and/or subsidies for certain kinds of players, such as small-scale or government-owned firms.

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India: The Growth Imperative

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