RELEASING the Economic Survey of India here in the National Capital yesterday, the OECD Secretary General, Mr Angel Gurria, said that “Policymakers are to be commended on the remarkable catch-up achieved in recent years, making India one of main driving forces of the global economy.” He added: “The priority given to more socially inclusive economic growth is appropriate and further reforms are needed to achieve it.”

According to the Report, Indian Economy has ranked among the best performers over the past decade, and poverty has been falling faster than in many other emerging economies. India now has the opportunity to move towards sustained and socially inclusive double-digit growth if the right policies are put in place.

To ensure strong growth continues and is sufficiently inclusive, the government needs to target public expenditure better on the poor. Although high growth has reduced poverty, progress could have been faster, the OECD says.

The report welcomes the planned introduction of a nationwide goods and services tax and suggests that in order to keep the overall rate low, the base should be as wide as possible. Further fiscal consolidation is also called for, making more funds available for private investment. Cutting red tape for businesses and further lowering barriers to trade and investment will help both companies and households. The report also notes that while progress has been made to improve infrastructure, even greater investment in this area is necessary to boost growth.

Strengthening the financial system and promoting access to financial services is essential for strong and inclusive growth. The Report notes that many Indians still lack access to bank accounts although microfinance is improving opportunities in many communities. The financial sector proved resilient during the global downturn but there remains scope for greater competition.