India's story compelling evidence that openness in services contributes to growth: report

India's economic reforms and growth story offer compelling evidence that openness in services contributes to long run growth performance, the IMF, World Bank and WTO said in a joint report Sunday.

India's reforms in the 1990s brought more openness, better regulation and greater investment, allowing Indian manufacturing firms to source services from a range of domestic and foreign providers operating in a more competitive environment, the report said.

The report -- 'Reinvigorating Trade and Inclusive Growth' -- was released by the International Monetary Fund (IMF), World Bank and World Trade Organization.

Manufacturers' access to better, more reliable, and more diverse business services enhanced firms' ability to invest in new opportunities and technologies, to concentrate production in fewer locations, to efficiently manage inventories, and to coordinate decisions with suppliers and customers, it said.

Referring to a 2016 study, the report said procompetitive reforms in banking, insurance, telecommunications and transport boosted the productivity of both foreign and locally-owned manufacturing firms.

Other empirical studies reinforce these findings, but also stress the importance of well-designed reforms accompanied by sound domestic regulation, said the report, asserting that India provides "compelling evidence that openness in services contributes to long run growth performance".