labour demand and supply are still present along a number of dimensions. all this shows that large structural problems remain and need to be solved. what needs to be done to speed up labour market reforms? this is a difficult question, not least because the euro area labour markets are still very heterogeneous. each country should identify the root causes of its labour market deficiencies and implement appropriate corrective measures. however, there are some areas of reform that apply to many, if not all, euro area countries. improved job mediation, education and training, to mention just a few examples, all help towards making the matching process more efficient. in addition, euro area countries need to ensure that tax and benefit systems make work pay. reforms to tax and benefit systems should increase work incentives, profitability and competitiveness and consequently labour supply and demand. at the same time, it is important to ensure that tax - benefit reforms are undertaken without jeopardising the long - term sustainability of public finances. conclusion ladies and gentlemen. joseph schumpeter taught us that economic development consists of the continuous introduction of new combinations of products and means of production. he taught us that this process involves the incessant mutation of the economic structure from within, destroying the old and creating a new. in today's dynamic, ever - changing economic environment, entrepreneurs have to be all the more innovative and sensitive to new opportunities. the regulatory framework has to be designed in such a way that it allows this to happen by providing the right incentives for innovation, dynamism and economic growth. today's dynamic society also requires an increased ability of markets to adjust smoothly to changing economic circumstances. this is all the more true of a monetary union, where member countries are no longer able to use country - specific monetary and exchange rate policies to address country - specific shocks. in such an environment, other adjustment mechanisms are needed such as price and wage flexibility and factor mobility. structural reforms can contribute to a better functioning of these adjustment mechanisms by fostering integration and competition. the relationship between integration, competition and the single currency works in both directions. the euro itself has already contributed to more integration and competition and will continue to do so in the future. its impact is most clearly visible in financial markets, where a single money market has been created and a deep, liquid bond market has encouraged a surge in debt issuance by the corporate sector. in product markets, the euro has an important impact on the cross - border transparency of prices

standpoint of achieving food security. it is, therefore, necessary to promote modern scale neutral agricultural technologies with greater emphasis on bank credit to agriculture as a tool to improve productivity. finally, there should be renewed emphasis on indigenous research and development on technology for dry - land farming, rainwater harvesting and sustainable water use, high yielding seed varieties with pest and drought resistant traits. in this regard, the role of agriculture research institutions and related support agencies cannot be lost sight of. conclusion 23. this is not an exhaustive list. however, i feel that instead of lamenting that productivity has been low, we must look at the past to the green revolution in the 1960s to draw confidence that productivity can be improved. we need to find ways to surmount the existing constraints and step up productivity using finance as a tool. the green revolution paved the way for food security in india. no major technological breakthrough has emerged since then, and with the need for higher production growing, a second green revolution is inevitable. in fact, to borrow a term coined by prof swaminathan, we need an evergreen revolution. however, to cater to the food security and food safety net, india needs a higher production along with enhanced productivity in cereals, pulses, oilseeds, vegetables, poultry, meat, fish and milk. i am sure the seminar would be very useful in generating new ways and means to do so. to achieve this goal, india needs to invest more in agriculture and allied sectors. i wish the deliberations of the seminar a success and hope that an actionable plan would emerge out of it and the participants would take it upon themselves to implement it in their respective organizations so that regional and inter and intra - state disparities can be narrowed down and we can effectively contribute to increasing agricultural productivity in our country. bis central bankers ’ speeches