PM Modi gave an eloquent speech on the 76th Independence day addressing the nation from the ramparts of the Red fort. This call was aimed at bringing forth the idea of enlisting this $3.1 trillion economy into the list of developed countries by 2047. A developed country according to the World Bank's definition is a country with per capita annual income of over $12,000 and is considered a higher-income nation. The target year chosen has obvious significance. It's the year when India i.e. Bharat shall accomplish and celebrate 100 golden years from the time it freed itself from the shackles of the English. This audacious vision brought forward is for sure a required one and with this thought comes a lot more challenges and responsibilities on the part of every Indian citizen. Fulfilling this dream would be the truest celebration of Independence in 2047.
Looking into the Indian economy at a glance, there exists a limpid classification of sectors.
Achievements to date:
Where we are and what we’ve done?
According to the Economic Times, the Indian economy shall have a projected growth of 8% in FY 2023. The major growth-driven sectors include -
- IT sector - In the past few years the IT sector has achieved milestones worth mentioning. Approximately 33 Indian IT startups have earned unicorn status and the Nifty index of the IT sector has returned a stunning 132%.
- Renewable energy - Production of 450 GW of renewable energy by 2030. Renewable energy accounts for about 33% of India's primary energy consumption. India is increasingly adopting responsible renewable energy techniques and taking positive steps towards carbon emissions, cleaning the air, and ensuring a more sustainable future.
Ernest and young, the leading professional services organization, announced a growth projection for India. It is estimated that India shall reach a GDP size of US$26 trillion (in market exchange terms) by 2047, the 100th year of its independence.
In its report, EY had projected growth enablers that might drive the economy and enrich it to live up to its dreams of a developed nation.
- Those enablers include:
- Perspective change from non-renewable to renewable energy - With Amrit kaal objectives being fulfilled and Paris climate deal affirmations in place India hopes to generate 500 gw of renewable energy by 2030 and transform the nation into a greener and more sustainable future.
- Logistical building - The GOI's National Logistics Policy and National Monetization Pipeline are in progress. India is hopeful of achieving growth in the infrastructural sector and aims to lower the cost of movement and increase efficiency. National dedicated freight corridors would further reduce the time for the movement of goods and services within the country and make cargo delivery economical and reliable.
- Atma Nirbharta - With Atma Nirbhar Bharat ideology and Amrit Kaal ongoing the domestic companies are being encouraged to accelerate their production to fulfill internal demands. Increased production of EVs, semiconductors and PLI(Production Linked Investment) schemes aboard the country aims to become manufacturing resilient and achieve path-breaking results.
- Service Sector boon - India, having the largest pool of English-speaking STEM graduates with further addition of 2.14 million will unleash a massive boom in the domestic industry and increase economic efficiency.
- Digitalization - The furious growth trajectory that India has achieved in this sector is phenomenal. From being a digitally backward nation to now achieving a 15.6 percent growth in this sector with schemes like ONDC, BHARAT PE, and BHIM UPI.
Even the Confederation of Indian Industry (CII) estimated that India in 2047 will be USD 35-45 Trillion.
- What does growth by 2047 mean?
A middle-income status would make India a $7 trillion economy, which is 2.5 times the size of today. It would mean 80% high prosperity — on PPP terms — compared to where India stands today. The India@100 report says a high-income status would mean becoming a $60 trillion economy, which would be 20 times the size of today and more than 2.5 times the current size of the US economy.
Challenges ahead:
- There has been a gap when it comes to the mobilization of labor. The report said a significant change is needed to achieve the outcome required to earn a middle income. It will then require a dramatic increase in labor productivity to achieve further gains toward high-income status.
- Population - As per ‘The UN State of World Population Report 2022’ in 2023 India shall surpass China, as the world’s most populous country.
This most popular thing comes with innumerable challenges ahead. - Hunger crisis - As per the latest Global Hunger Index (2022), India with a score of 29.4, is ranked 107th among 121 countries. India has disappointing scores as compared to its poor neighboring nations.
- Inequality - Inequality is one of the major issues that India needs to tackle to ensure the overall growth of the country. India is lagging on this front both on overall social progress and especially on areas related to environmental quality, health care. As per the World Inequality Report 2022, India is among the most-inequitable countries globally.
- HDI Index and literacy - According to the HDI index and literacy report India ranks far worse than many nations and is still way behind in achieving healthy lifestyles, quality education, literate citizens, and eliminating poverty and job scarcity.
Ways Ahead:
Achieving a 100 crore covid vaccination prediction mark, becoming a 7 trillion dollar economy, and many more is itself indicative of the fact that the goal isn't unachievable. Sustained efforts and innovation on the part of the implementing agencies and citizens are required. India needs to ensure that its policy choices are robust because of these changes ahead, and are not based on outdated ideas of what it will take to achieve economic development. An integration of all social and economic development agendas should be the first pillar of the new development approach. What is needed is a so-called "Competitive Government" that can design and implement the policies needed for competitive firms to develop strategies that are equivalent to the superpowers and become a global manufacturing hub, reduce the human load on agriculture, and make the demographic dividend deliver the best result it can.