India at an inflection point: WEF report

Indiainfoline: There is an urgent need for the Govt, private sector and civil society to collaborate on governance reforms to eliminate corruption and ensure equity India is at an inflection point and the prospect of it sustaining a 8-10% growth is achievable, according to a report released by the World Economic Forum's (WEF) Global Risk Network and the Confederation of Indian Industry (CII). However, a number of basic challenges are acting as a handbrake on development and need to be addressed, the report adds.

While it is well known that existing infrastructure in India is stretched to its upper limits and that increased investment is required, there is also an urgent need for the Government, private sector and civil society to collaborate on governance reforms to eliminate corruption and ensure equity in the provision of basic services (such as education, water and sanitation), says the WEF report.

…In the medium and long term, risk mitigation should focus on building increased resilience via continued investment in basic infrastructure and education, as well as on inclusive growth, in order to reap the demographic dividend of a young, aspirational and growing populace, according to Shepherd.

A key priority highlighted in the report is water. "There is no doubt that the current water situation in India will get much, much worse unless different approaches are taken. India needs to explore opportunities for further public-private partnerships and develop a flexible and collaborative process to shape appropriate water policies and speed up governance reform in this sector," says Sylvia Lee, who oversees Environmental Risks in the Forum's Global Risk Programme.

The report concludes that for India - a country characterized by huge opportunities and ever-increasing regional and global interdependence - the imperative is for collective action to mitigate these shared risks. Ring-fencing is no longer an option, says the WEF report.