##ary process. the structure of the economy and the role of services sector have also been changing which have implications for transmission of monetary policy. second, though inflation is not targeted, policy statements including those in the reference period, have been identifying a tolerable level of inflation taking into account the global trends and domestic compulsions. the measurement issues have also come to the fore and the notions of core - inflation and underlying inflation as against headline have been subjects of discussion. there has also been some sensitivity in the market, to the issues relating to measurement of prices in the growing services sector as also asset prices. a national consensus on the need to emphasize price stability in macro policy seems to be emerging. third, in a deregulated environment, besides the provision of adequate credit, availability of adequate resources at appropriate costs, i. e., interest rates becomes more important. stable and preferably a low interest rate regime is conditional upon enabling stable inflationary expectations, which in turn depends on price stability. during the period, the fiscal and other constraints inhibiting the downward flexibility in interest rates had been debated and the need to impart flexibility to interest rates has emerged as a focal point for policy action. consequently, there is widespread appreciation of the efforts to ensure reduction in existing high levels of revenue deficit and fiscal deficit, besides rationalising administered interest rates on contractual savings to impart efficiency and operational flexibility to the financial sector. during this period, most interest rates have been deregulated. the few prescriptions that exist, viz., export credit, small loans, foreign currency deposits are in the nature of ceilings related to market interest rates such as the relevant prime lending rate ( plr ) of the concerned bank or the libor of the concerned currency. currently, the only administered interest rate is on saving deposits. while directed credit continues, the conditions attached to such credit dispensation have been made considerably flexible. fourth, the monetary policy framework in india from mid - 1980s till 1997 - 98, can, by and large, be characterised as a monetary targeting framework on the lines recommended by chakravarty committee ( 1985 ). because of reasonable stability of the money demand function, the annual growth in broad money ( m3 ) was used as an intermediate target of monetary policy to achieve monetary objectives. in practice, unlike many other countries, which followed such an approach, the monetary targeting approach was used in a flexible manner with a ‘ feedback ’. this was necessary partly because of high level of

the contribution of labour to value added in india compares poorly in a cross - country perspective – in terms of appropriate skills for a specific job, only 51 per cent is employable, highlighting the criticality of the upskilling missions that are underway such as skill india that aims to bridge the skill gap and enhance employability. startup and entrepreneurship support initiatives foster 3 / 6 bis - central bankers'speeches innovation and job creation. digital transformation through the digital india campaign opens up new avenues for employment. rural employment programmes and women empowerment schemes also promote the contribution of labour to value added. more than 80 per cent of the workforce is employed in the informal sector, which i shall address shortly. furthermore, india ranks low in women's participation in the workforce1. increasing female labour participation is a key challenge, needing social norms in favour of working women ; incentivising diversity in educational institutions and work places ; flexible working hours and women friendly policies and facilities at work places ; and promoting work - life balance – metaverse2 may offer exciting opportunities. a qualified labour force contributes best when supported by high quality infrastructure. india's per capita investment in infrastructure at us $ 90. 6 in constant 2015 dollars terms in 2020 needs to be scaled up by lifting infrastructure investment growth from around 3. 5 per cent to at least 6 per cent to achieve world class standards. this will require transparent regulations, faster clearances, smooth land acquisition and climate clearance policies, and adequate finance. the sustained infrastructure spending and logistics push across successive union budgets is creating the environment for financing india's infrastructure goal. infrastructure creation has been a key focus of public policy, with flagship schemes like the national infrastructure pipeline ( nip ) and pm gati - shakti mission, complemented by a jump in the share of public investment in total investment 2015 - 16 onwards. sub - national governments and the private sector have also been empowered through interest free loans for capex and through the production linked incentive ( pli ) scheme to step up their capital expenditure. the infrastructure push encompasses roads, railways, ports, electricity, digital infrastructure, and rooftop solarisation. the essence of expanding the role of the workforce in india's future lies in the formalisation of jobs, which bring the role of the manufacturing sector to centre - stage. india largely bypassed manufacturing in its developmental journey - services account for two - thirds of india's economy today. india's manufacturing sector as a proportion to gdp ( in constant 2015 us dollar terms