Education key to 'Make in India' success: World Bank

Thrust on education and healthcare will be the key to success of the government's 'Make in India' programme, helping the country's labour force become globally competitive, World Bank said today.

"I think 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," World Bank Country Director in India Onno Ruhl said here.

He was speaking to reporters while releasing the World Bank report, 'Addressing Inequality in South Asia'.

Prime Minister Narendra Modi had launched the 'Make in India' campaign in September to attract foreign investors and make the country a global manufacturing hub.

Manufacturing contributes about 16-17 per cent to the GDP. Government aims to increase the share to 25 per cent by 2022.

Ruhl also said that the national health mission is an opportunity for the government to build a good healthcare system.

"It is really good that there is a conversation about national health insurance. The national health mission is a good opportunity to build a good health care system. Healthcare is a challenge to every country," he added.

Besides, Ruhl said India should ensure that subsidies reach the targeted segment.
"I would say look at...subsidies and make sure that the money spent actually reaches the targeted people. There is a need to improve and work on health and sanitation because it is an opportunity. Create as many jobs as you can for everybody," he said.

The World Bank report said jobs and migration are supporting considerable upward mobility among both the poor and the vulnerable sections of the population in India.

"Households from Scheduled Castes and Scheduled Tribes – considered together – experienced upward mobility comparable to that of the rest of the population," it said.
As per the World Bank analysis, increase in non-farm jobs in rural India was one of the main drivers for upward mobility.

Ruhl said that at the village level, the occupational shift from farm to non-farm employment has lifted many out of poverty. "The other important factor for upward mobility has been migration within the country."

Upward mobility has clearly enhanced people’s aspirations, he said, adding that the rural-urban transformation presents a huge opportunity to absorb the country’s "young cohorts into dynamic urban hubs" that can offer jobs and a better quality of life.

The World Bank report said India has done well in terms of mobility in adulthood, as greater levels of urbanisation have provided more employment opportunities.

It added: "Opportunity in childhood can be shaped by access to basic services, including health, education, and sanitation; mobility during adult life can be enhanced by job creation and the development of vibrant cities; and adequate social protection throughout life can help mitigate shocks for the poorest."