Despite having a similar population size, India’s labour force has a lower level of education than that of fellow emerging market economy China, said 4D Infrastructure global equity strategist Greg Goodsell.
“China has an overall literacy rate of 96 per cent – split 98 per cent for males and 95 per cent for females. However in India the male/female divide is stark,” he said.
“The overall literacy rate is 72 per cent: split 81 per cent for males and only 63 per cent for females.”
Mr Goodsell said that India’s Prime Minister Narendra Modi has initiated a number of programs designed to lift the level of education in the country.
“Promisingly, Indian Prime Minister Narendra Modi understands the critical importance of improved educational outcomes to India’s future prosperity and has initiated two skill-development programs involving total spending of US$3.3 billion,” he said.
“This aims to equip 15 million people by 2020 with the skills necessary to bring more high-grade manufacturing to the country.”
This, coupled with the Modi government’s US$130 billion dollar commitment towards upgrading India’s railway system by 2020, should help India overcome the “considerable challenges” it currently faces.
“There is enormous scope and daunting challenges before the Indian economy. The challenges are significant but nevertheless, all signs point to increased Indian prosperity in coming decades,” Mr Goodsell said.
Mr Goodsell’s comments reflect remarks made by Mirae Asset Global Investments earlier in October, who said India would “become the world’s third largest economy by 2030”, supported by recent reforms led by the Modi government.
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