Need land, labour reforms to aid manufacturing: Chief economic adviser

India's next government will have to bring in land, labour and financial sector reforms to improve the productivity of the manufacturing sector and boost economic growth, India's chief economic adviser said.

"These are the critical areas, we need to work on," Krishnamurthy Subramanian told Reuters in an interview.

Several business leaders said a delay in land acquisition for private factories, decades-old restrictive labour laws and higher borrowing costs discourage many investors who therefore prefer to build new plants in countries like Vietnam, Thailand, and Bangladesh.

The share of manufacturing in the economy has grown just 1.5 percentage points in the