How India can achieve rapid growth to achieve 'Viksit Bharat 2047' goal?

India must adopt a focused approach in the coming years to achieve Viksit Bharat by 2047. Achieving 8-10% growth is possible with coordinated, growth-focused policies at both central and state levels

India, a country with the largest population on the planet, is pursuing the objective of rapid growth and development after successfully reducing the number of people suffering from abject poverty. The initiatives that were undertaken during Covid, in a calibrated manner, have yielded positive results, with India recording the highest growth rate amidst difficult global times. The lesson is clear that a carefully crafted macroeconomic policy with clear objectives can yield predictable results.

 

In the recent period, India is the only country which has started policy initiatives with a 25-year planning horizon. The objective is clear, and that is to become a developed nation by 2047. The aim is to achieve growth and income levels that ensure prosperity for its citizens. The World Bank definition of an advanced country is per capita income of $14,006 in 2024, rising from $12,746 in 2015. In 2047, following the same growth trajectory, the per capita income is estimated at $17,635. In contrast, the per capita income of India in 2023 was $2,540. To achieve the level of $14,006 by 2047, India should record a growth rate of 8 per cent annually and, if the target is to achieve $17,635, the growth rate should rise to 10 per cent annually. In the last 10 years, the per capita income of India has recorded an annual increase of 5.4 per cent.

 

 

Thus, India will have to pursue a very focused approach in the next few years to actually achieve Viksit Bharat@2047. These growth rates, especially 8 to 10 per cent, are feasible if the policies pursued by the government, both central and state, have a concentrated and well-calibrated growth-oriented approach. A few essentials to achieve this high rate of growth would need to be considered.

 

Need a network of NITI Aayog

 

The role of Niti Aayog becomes extremely important in the projected growth trajectory. The need is to have not only a Niti Aayog in Delhi but also a corresponding organisation in the states. The Niti Aayog network or web, combined of the Centre and the states, would then need to coordinate their activities so that there is a balanced approach across the country. Then, it would be necessary to identify those regions, states, and sectors in which such growth potential exists and can provide direction to other sectors with forward-backward linkages.

 

Make-in-India: Lessons after evaluation

 

The time has come to distil lessons after evaluating the “Make-in-India” strategy which was initiated in September 2014. In Viksit India, the manufacturing sector and the supply of goods and services will need to play a very important role. In different parts of the country, there will be a need to ensure a smooth supply of inputs to different segments of the industry which will be geared to produce goods that are necessary for investment. Thus, there would be a need to have a monitoring unit to support and ensure that goods are reaching on a priority basis those industries which are providing and preparing intermediate goods for final production.  

 

Tapping the rich demographic dividend

 

The country enjoys a rich demographic dividend, though for a limited time of two decades, adding nearly a crore of people to the workforce annually. To tap the demographic dividend, the Government, both at the Centre and states, would have to consider skilling, education, and issues pertaining to the health of the workforce. Therefore, considering the requirements of Viksit Bharat and having identified the potential sectors in which initiatives need to concentrate, skilling centres, as well as health/wellness centres, would need to be established. The MSME University, on the lines of Agriculture University, state-wise, could provide a solution.

 

Financial sector: Need a comprehensive plan

 

The financial sector is most crucial to growth, like oxygen to life. The growth of the economy would depend on the financial sector — stock market, banks, non-banks, and micro-finance institutions providing resources to productive agencies. In view of the fact that the Non-Banking Finance Companies play an important role in providing financial resources to the last-mile customer, generally without documents or collateral, it would be essential that the important role of these companies is recognised and encouraged across the country.

 

Again, a road-map would be required for the financial sector, with a provision of monitoring on an annual basis.  

 

Role of the macroeconomic policies

 

The macroeconomic policies — fiscal, monetary, agriculture, industry, external sector, and housing — would have to operate in a synchronised manner to support and complement each other. Each of the budgets, at the Centre and states, incorporating the fiscal policy, would have to focus on Viksit Bharat, as also other macro policies, especially monetary policy. In fact, a mid-term review of the budgets, Centre and states, might also be required to have a perfectly synchronised march towards Viksit Bharat.

 

There is also a need to prepare a Gantt chart, and an annual performance-based evaluation, to ensure that the projected growth for different sectors in different states is progressing according to the Plan. In fact, given the seriousness of pursuing growth, there is a need to have a dedicated ministry, with a senior minister directly reporting to the PM, on Viksit Bharat@2047.

 

Conclusion

 

In view of the fast-changing circumstances, domestically and globally, especially in the USA, challenges have increased, both in the short and long term. The planners and policymakers will have to return to the drawing table again to redesign their architectural plan for a Viksit Bharat@2047. 

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The writer is the CEO at EGROW Foundation and a former chief of Punjab and Sind bank

 

Disclaimer: These are the personal opinions of the writer. They do not reflect the views of www.business-standard.com or the Business Standard newspaper