This will create employment opportunities in semi-urban and rural areas and promote inclusive growth. The demand for warehousing infrastructure has also gone up in tier-2 and tier-3 cities in the wake of steep jump in online trading. Moreover, investment in intangible capital such as research and development and skill upgradation of human resource has strong and positive impact on productivity.
Some empirical evidence suggests that the impact of investment in intangible capital on labour productivity is more than investment in tangible capital.4 16. Seventh, a dynamic and resilient financial system is at the root of a stronger economy. India’s financial system has transformed rapidly to support the growing needs of the economy.