In 2012, overall productivity rates in India stood at just 10 percent of U.S. levels and significantly trailed those of most peer developing countries, including Brazil, Russia, China, and Malaysia.

Productivity is a central measure of the innovation and technical capacity of a nation and has a direct impact on the ability to compete in the increasingly high tech, global marketplace. India should abandon its current focus on innovation mercantilist policies and adopt a pro-growth strategy that can raise across the board productivity and enhance innovation-based competitiveness. This is the best way to promote long term economic and job growth.