from the continued weakness in labour force growth. potential growth is projected to rise in west asia in 2022 - 30 as strengthening tfp growth offsets demographic headwinds to potential growth. the secular slowdown over the last decade and expectations of another slow decade ahead warrants a renewed exploration of the linkages between physical capital investment, improvements in human capital, and exploitation of technological advancement. in an environment in which populations across the world are either ageing or declining, and investment rates are trapped in a long - term deceleration, including foreign direct investment, it is perhaps an opportune moment to focus on productivity growth as the means of arresting the downturn and charting a new trajectory of pushing outwards the growth possibility frontier. it has been observed that productivity is not everything but in the long run, it is almost everything 7. this is the theme of my address today. iii. the paradox of productivity globally, productivity growth has undergone a prolonged slowdown since 2010, after a brief recovery in the years immediately following the gfc. this deceleration in tfp is more pronounced in emdes than in their ae peers. india has also suffered a decline in tfp growth, although moderate relative to the global experience – the average tfp growth rate in india krugman, p., ( 1997 ), defining and measuring productivity in the age of diminishing expectations, the mit press, july. slowed from 1. 3 per cent during the period 2000 to 2007 to 1. 2 per cent during 2011 to 2019, as against the emde average of 0. 2 per cent and the global average of 0. 1 per cent 8. tfp growth accounted for about 20 per cent of india ’ s aggregate gdp growth during this period, coinciding with the contribution of both capital and labour declining. gdp growth in india has remained relatively resilient, averaging close to 7. 0 per cent during 2000 to 2022 with some ebbing of capital formation and employment growth in sync with the deceleration in tfp growth. for the period 2022 - 30 the world bank projects india ’ s potential growth to reflect the outlook for south asia. underlying the generalised productivity slowdown are several confounding puzzles, at least from the policy practitioner ’ s point of view. i will focus on a few important ones in the interest of time. first, the slackening of productivity is synchronised across jurisdictions, apparently impervious to differentials

regulatory framework for several critical aspects of securitisation. 15. in 2007, the securities contracts ( regulation ) act 1956 was amended in 2007 to include “ securitised instruments ” in the definition of “ securities ”. the amendment has paved the way for listing and trading of securitised debt on stock exchanges. 16. consequently, the securities and exchange board of india ( sebi ) released draft regulations for “ public offer and listing of securitised debt instruments ” in june 2007 which is yet to be formalised. however, these guidelines envisage a very different transaction structure compared to current market practices. 17. earlier, the enactment of the securitisation and reconstruction of financial assets and enforcement of security interests act, 2002 ( sarfaesi act 2002 ) enabled securitisation of the non - performing assets of banks, which could sell off their npas to asset reconstruction companies registered with rbi. the sarfaesi act also laid the framework to the constitution of asset reconstruction companies ( arcs ) specialising in securitising distressed assets purchased from banks. role of the reserve bank of india in regulation of securitisation 18. the reserve bank of india ( rbi ) is the regulator of the major players in the indian financial system ( banks, financial institutions and nbfcs ) and has to ensure that financial intermediaries engage in securitisation prudently. 19. the reserve bank issued the first set of comprehensive guidelines applicable to banks, financial institutions and non - banking financial companies ( nbfcs ) on securitisation in india way back in february 2006. the guidelines covered following aspects relating to securitisation transactions : • broad definitions on important securitisation related concepts such as securitisation, spv, bankruptcy remote, credit enhancement, first loss facility, liquidity facilities, service provider and underwriting facilities. • prescribed detailed “ true sale ” criteria and criteria to be met by originators and spvs. some important criteria included that originators should not indulge in market making on securities issued by spv, originators shall not invest in more than 10 % of securities issued by spv, securities cannot have any put option, etc. • detailed policy for originators and third parties on provision of credit enhancements, liquidity support / facilities, underwriting facilities, servicing arrangements, etc. • capital adequacy norms for credit enhancement – first loss credit enhancement is deducted