“ network products ”, including equipment for it hardware, electrical appliances, electronics and telecommunications, and automobiles would also provide the cutting edge to india ’ s export strategy with considerable scope for higher value additions. 22. domestic policies need to focus on the right mix of local and foreign content in exports while aiming to enhance participation in gvcs. firms that engage in both imports and exports are found to be far more productive than non - trading firms ( world bank, 2020 ) 4. while choosing trade partners through free trade agreements ( ftas ), it is also important to learn from global experience and nurture those trade agreements that go beyond traditional market access issues. provisions relating to investment, competition, and intellectual property rights protection have a larger positive impact on gvc trade and need to be assiduously cultivated and ingrained into india ’ s export ecosystem. ( iv ) tourism as an engine of growth 23. tourism has been one of the sectors in the economy most severely impacted by covid19. at the same time, this is also a sector where pent up demand could drive a v shaped recovery when the situation normalises. 4 / 6 bis central bankers'speeches 24. india has immense potential to meet a diverse range of tourist interests – religion ; adventure ; medical treatment ; wellness and yoga ; sports ; film making ; and eco - tourism. we 5 18 biosphere have four major biodiversity hotspots, 38 unesco world heritage sites, reserves, over 7, 000 km of coastline, rain forests, deserts, tribal habitation and a multi - cultural population. the challenge nevertheless is to scale up our tourism market and enhance its contribution to economic development. 25. as per the third report of tourism satellite account for india ( tsai ) 2018, the share of tourism in gdp was 5. 1 per cent in 2016 – 17 and the share in employment was 12. 2 per cent ( with the direct and indirect shares at 5. 32 per cent and 6. 88 per cent, respectively ). in 2018 – 19, tourism ’ s share in employment increased further to 12. 8 per cent, with the total size of employment at 87. 5 million. the employment elasticity in this sector, thus, appears to be high. india attracted 10. 89 million foreign tourists in 2019, an increase of 3. 2 per cent over the previous year. the foreign exchange earnings generated by the sector during the same period was about ₹2 trillion, a year - on - year increase of more

##opardising financial viability of private investment while ensuring quality education at affordable costs. indian banks and the financial system would need to respond proactively to opportunities arising from the nep for new financing. 11. besides improving access to education, focus on quality of education and research will be critical to shape the outcome of education on economic development. skill acquisition is more important than mere mean years of schooling. the assessment of quality aspect of education often requires a multi - dimensional approach : reading and language proficiency ; mathematics and numeracy proficiency ; and scientific knowledge and understanding1. the emphasis on quality of education must begin at the foundation stage in schools up to plus 2 level. at another 2 / 6 bis central bankers'speeches level, the formation of the national research foundation as announced in the nep is a welcome step to fund outstanding peer - reviewed research and to actively promote research in universities and colleges. the creation of a national educational technology forum as a platform for use of technology in education is a necessary step to meet the requirement of rapidly changing labour market. 12. health is another vital component of human capital. good health increases life expectancy and productive working years. in high income countries, per capita health expenditure in 2017 was about us $ 2937, as against us $ 130 in low middle - income countries ( which include india ). initiatives such as the pradhan mantri bharatiya jan aushadi pariyojana ( pmbjp ) and pradhan mantri national dialysis programme ( pmndp ), free drugs and diagnostic service provision initiatives are expected to improve the quality and affordability of healthcare. the most important step towards providing affordable healthcare has been the launch of the ayushman bharat yojna, which lays down the foundation of a 21st century health care system, covering both government and private sector hospitals. 13. covid has brought to the fore the importance of easy access to health services to contain the mortality rate, given significant inter - state and intra - state differences in healthcare infrastructure. while laudable crisis time response to scale up health infrastructure has helped in dealing with the health emergency, a more comprehensive approach similar to nep for the health sector may be warranted, which must also cover deeper penetration of insurance, given the high burden of out of pocket expenses in india, and also preventive care. greater attention is required to improve the health ecosystem by ensuring creation of new medical colleges, higher number of pg seats and colleges for para