India can reap "demographic dividend" with more reforms: WTO

New Delhi, May 24 (UNI) The World Trade Organisation (WTO) has said India can reap the ''demographic dividend'' of its young population provided it continues with structural reforms along with greater investment in physical and human capital.

One-third of India's population is below the age of 18 years.

Attributing country's high rates of economic growth in recent years to significant structural reforms, including trade liberalisation, WTO said such reforms should continue addressing infrastructure bottlenecks, loss-making public sector units and agriculture sectors.

In its report for the fourth trade policy review of India, which is now being discussed at the WTO's secretariat in Geneva, the world trade body suggested that structural reforms should also be accompanied by appropriate macroeconomic policies. India will need a monetary policy to ensure that the public finances are sufficient to meet her developmental needs. It said India's fiscal deficit, while declining, remains significant.

The WTO report said public expenditure on infrastructure and human capital development is constrained by relatively low level of taxes to gross domestic product (GDP) as well as by spending on subsidies.

The multilateral trade body said Indian government's decision in July, 2006 to keep on hold all decisions on disinvestment in the state-owned enterprises has effectively stopped the privatisation programme.

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