BS Manthan: EAC-PM Chairman underlines 3 development goals for vision 2047

Prof S Mahendra Dev said that since 2014, reforms have led to a structural transformation that lays the foundation for a developed economy

Professor S Mahendra Dev, chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), on Tuesday outlined a three-pronged development vision for India as it moves towards becoming a developed economy by 2047.

 

Speaking at a fireside chat on the theme ‘Reforms Agenda’ at BS Manthan, Business Standard’s flagship event held at Bharat Mandapam in New Delhi, Prof Dev said growth, inclusion and sustainability would define India’s long-term trajectory.

 

Three development goals for 2047

 

On India’s future, Prof Dev said the country has three key development goals by 2047. The first is raising per capita income. This would require a stronger focus on exports, technology, innovation, productivity, total factor productivity and human capital. He also highlighted the need to improve female labour force participation.

 

“Female participation rates are about 35 per cent in India. The world average is 50 per cent, so we have to reach that level,” Prof Dev said. He added that technology, including digitalisation and artificial intelligence, can help boost productivity and growth.

 

The second goal is inclusion, which means generating quality employment, he said.

 

Prof Dev further pointed to two structural issues that have persisted in the Indian economy since Independence. The first is the lack of labour-intensive manufacturing. The second is the weakness in health and education.

 

The third goal is achieving net zero carbon emissions by 2070, he said.

 

Reforms since 2014 and fiscal focus

 

Prof Dev said that since 2014, reforms have led to a structural transformation that lays the foundation for a developed economy. “The central element of this is the fiscal reform,” he said.

 

He noted that the Reserve Bank of India (RBI) has undertaken several reforms to strengthen the banking sector. Programmes such as the Production Linked Incentive (PLI) scheme and Make in India have supported manufacturing, while recent free trade agreements (FTAs) have improved access to global markets.

 

He stressed the need for state-level reforms and greater coordination across policy areas. Capital expenditure drives infrastructure creation, tax reforms and the goods and services tax (GST) improve consumption and market efficiency, and financial sector reforms increase credit flow.

 

“There is a synergy among all this reform agenda,” he said.

 

Preparing for global uncertainty

 

On global uncertainty, Prof Dev said India is prepared at the domestic level to deal with global shocks. “Aatmanirbhar Bharat is our response to the global turmoil,” he said.

 

Referring to the current term of US President Donald Trump, he said the global trade environment has become more geopolitical, increasing uncertainty. “Things are not clear in terms of US. Now the global trade has become more geopolitical. So, there will be uncertainty in future and we need to be prepared for it,” he said.

 

Improving ease of doing business and deregulation is a continuous process, Prof Dev said.

 

Education, decentralisation and manufacturing

 

Prof Dev said education enrolments are rising, with more girls joining schools and colleges. He suggested that greater decentralisation to urban councils may also be needed.

 

Responding to concerns about stagnation in manufacturing, he said "manufacturing is not stagnant". While its share in the economy has not increased, the value added in manufacturing has risen by 75 per cent in real terms over the last 10 years. The share has remained flat because services have grown faster.

 

At the state level, he said private capital and foreign direct investment (FDI) are also coming in. “For manufacturing, services are very important,” he said, underlining the link between the two sectors.

 

Agriculture and diversification

 

On agriculture, Prof Dev said the sector has performed well over the last decade. However, there remains a heavy focus on rice, wheat and sugarcane, which together account for nearly 80 per cent of water use. He said efforts are being made to diversify cropping patterns.

 

He stressed the importance of post-harvest activities such as warehousing and said small and marginal farmers must be integrated with farmer producer organisations (FPOs) and cooperatives.

 

On technology adoption, he noted that farmers are increasingly using digital tools and artificial intelligence.