Bureaucracy and corruption biggest trouble for India: Richard Boucher

Q&A with Richard Boucher, deputy secretary-general, OECD

Emerging nations like India have tremendous growth potential but policy hurdles and barriers are restricting this growth, said Richard Boucher, deputy secretary-general, Organization for Economic Cooperation and Development (OECD), in an interaction with Nayanima Basu on the sidelines of the CII Partnership Summit 2013. Edited excerpts:

What role should emerging nations like India play in creating a more enabling environment and shaping the world economy?

I think emerging nations have a lot of capabilities. They are going to be part of the value chain to create products and they are going to be part of the customer base. So, the ability to get more involved means decreasing the barriers in trade and investment, opening up services and creating values, education, skills and right kind of infrastructure. And India is well positioned to do that. So I think prospects are good for India to becoming more involved in this kind of trade.

What areas should India focus on particularly in order to play a larger role in global economy?

There are so many restrictions and hurdles that India faces. You require investment in infrastructure, education for the purpose of inclusiveness. But the biggest trouble facing India today is bureaucracy and corruption.

India at present is facing a lot of policy hurdles as you know. Will it hamper growth in the long run?

Sure every barrier, every bribe, every restriction makes it harder for India to be part of the growth chains. It will be also harder for India to create those chains, which many of the developing countries are well capable of doing. At the same time I see a lot of policy on infrastructure, skills and education.

India, which was once seen a favourable destination for investment, is seeing an unprecedented flight of investors lately. Your views.

I am concerned the way the numbers have bounced up and down for India. I think this is a sign that you need to keep reforming and reforming. Then only India is going to be attractive to domestic as well as foreign investors. They have to also know that environment is conducive.

What is your opinion about the slew of free trade agreements that emerging nations these days are signing indiscriminately? Do you think this is acting as an impediment in the multilateral forum?

Everyone benefits from these agreements I think, multilateral even unilateral benefits can brought greater benefits such as removing restrictions on some kind of foreign investments. These agreements will bring India a better and stronger place in the creation of global values.