How has inadequate progress on factor market reforms impacted India's double-digit growth aspirations? What measures has the government taken in this regard?

Impact on India's economy's growth due to inadequate factor market reform: I Land (1) Land fragmentation and land disputes lead to delay in land acquisition for industries. (2) Predominance of small, marginal farmers limits agricultural growth. - 86% → Small farmers having ≤2 hectares. - Top 5% → Farmers only contribute to 40% of agricultural output.

II Capital (1) Predominance of non-institutional lending to MSMEs. (2) High degree of NPAs with banks. (3) Long drawn loan process reduces ease of doing business. III Labour (1) Lack of lab our productivity at only 25%.(NSSO Report), FLPR=32%. (2) High unemployment among youth at 40-45%.(highest globally) (3) 90% of unemployed workforce. IV Enterprise (1) Multiplicity of tax compliance to businesses. (2) High rate of failure of startups. - 90% of startups fail within first 5 years. (3) Import dependence on essential consumer goods. - Dependence on China for electronics.

Measures taken by government: (1) Digitisation of land records DLIRMP. - SVAMITVA scheme. - 90% of land records digitised in villages.(Geo-Survey) (2) Initiatives like PM Gati Shakti, National Infrastructure Pipeline NIP for multimodal connectivity. - (Less Logistic cost) (3) PLI, ELT scheme for production and manufacturing. - EGGL scheme for credit support to MSMEs. (4) Insolvency Bankruptcy Codes, reduction in NPAs percentage in banking balance sheets. (5) Skill India Mission, StartupIndia for labour productivity. NEP 2020 → Vocational training. (6) Technology penetration through seminal India, India AI Mission. The goal of Viksit Bharat 2047 is possible through robust factor market in India.

— ANKITA ANIL PATIL · AIR 140