India's labour productivity gap with China has widened significantly since 2000, despite strong economic growth. The country has yet to achieve an industry-led productivity transformation seen in peers like China and South Korea. Structural constraints, economic disruptions, and the pandemic have hampered progress, with a need for deeper reforms beyond current initiatives.

India's labour productivity gap with China has widened significantly since 2000, despite strong economic growth. The country has yet to achieve an industry-led productivity…

The report noted that while emerging market labour productivity has grown steadily over the past three decades, the current phase is marked by sharp divergence across countries