World Bank wants india to target subsidies better

Source: Economic Times

The World Bank has suggested India should target its subsidies better while focusing on universal healthcare and education to bring millions of people out of poverty in the country and ensure success of the ‘Make in India’ initiative.

The advice has come at a time when the Modi government is working towards improving the effectiveness of its subsidy related programmes by linking them to the Aadhaar-enabled direct benefit transfer scheme.

“The key is to focus on quality of primary and secondary education It is really important that India competes with the rest of the world because the ‘Make in India’ means that your labour force has to be competitive with the rest of the world,” Onno Ruhl, World Bank country director in India said while releasing the World Bank report ‘Addressing Inequality in South Asia’.

“In South Asia, a substantial share of public spending goes into subsidies. Some of them are regressive and can crowd out the provision of essential public goods. The bias towards food and price subsidies is especially marked in India and Pakistan,” the report said.

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