India and the knowledge economy

In the global economy of the twenty-first century, India will have to use knowledge even more effectively to raise its productivity in agriculture, industry, and services and to reduce poverty. It can draw on a number of existing strengths as it strives to transform itself into a knowledge-based economy-availability of skilled human capital, a democratic system, widespread use of English, macroeconomic stability. a dynamic private sector, institutions of a free market economy, a local market that is one of the largest in the world, a well-developed financial sector, a broad and diversified science and technology infrastructure, and global niches in IT.

But India can do much more to leverage its strengths and seize today's opportunities. India and the Knowledge Economy suggests actions to strengthen its economic and institutional regime, develop educated and skilled workers, create an efficient innovation system, and build a dynamic information infrastructure. In so doing, it will be able to improve its international competitiveness and join the ranks of countries that are making a successful transition to the knowledge economy.