India’s Economic Survey Highlights the Path to Becoming a Developed Nation by 2047

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The Economic Survey, presented by Union Finance Minister Nirmala Sitharaman in Parliament on Friday, laid out an ambitious roadmap for India to achieve developed nation status by 2047. It emphasized the need for sustained economic growth of 8% over the next two decades, underscoring the challenges that lie ahead.

The task of achieving such high growth rates is daunting, given the current economic projections. Earlier this month, the National Statistical Office (NSO) estimated India’s GDP growth for 2024-25 at 6.4%, marking the slowest pace in four years. Additionally, the International Monetary Fund (IMF), in its January 17 update of the World Economic Outlook, forecasted India’s GDP growth to stabilize at 6.5% through 2026.

The IMF noted that India’s growth slowdown has been driven by a sharper-than-expected deceleration in industrial activity, even as the global economy holds steady. To put this in perspective, India’s growth rate, which stood at 8.2% in 2023, is projected to decline to 6.5% in 2024, reflecting the challenges of maintaining robust growth.

To achieve the lofty target of becoming a “Viksit Bharat” (developed India) by 2047, the Economic Survey called for a series of critical reforms. These include:

  • Raising the Investment Rate: The survey emphasized the need to increase the investment rate to 35% of GDP from the current 31%.
  • Boosting Manufacturing: Developing the manufacturing sector further is crucial to drive growth and create employment opportunities.
  • Embracing Emerging Technologies: Investment in cutting-edge technologies such as artificial intelligence (AI), robotics, and biotechnology is essential to remain competitive globally.
  • Job Creation: India needs to generate 78.5 lakh (7.85 million) new non-farm jobs annually until 2030-32 to meet its employment demands.
  • Improving Education and Literacy: Achieving 100% literacy and upgrading the quality of educational institutions are key to equipping the workforce for future challenges.
  • Infrastructure Development: High-quality, future-ready infrastructure needs to be developed at scale and speed to support economic growth

The Economic Survey stressed the importance of systematic reforms across various sectors to sustain high growth rates. Key areas identified for reform include land, labor, building regulations, utilities, and public service delivery.

It highlighted the need for deregulation, especially for small and medium enterprises (SMEs), which often struggle with limited resources. The survey proposed reducing regulatory burdens to enable SMEs to operate efficiently and compete effectively.

The report also introduced the concept of Ease of Doing Business (EoDB) 2.0, calling for it to be a state-led initiative. This approach would address the root causes behind business inefficiencies and encourage states to amend subordinate regulations where the Union government sets primary laws.

“To achieve its economic aspirations of becoming a developed nation by the centenary of Independence in 2047, India must consistently maintain a growth rate of around 8% at constant prices for at least a decade or two,” the survey stated.

The roadmap underscores the necessity of collaborative efforts between the Union and state governments. The survey urged states to take an active role in identifying opportunities for deregulation and aligning policies with the broader goal of sustained economic growth.

In conclusion, the Economic Survey 2024-25 outlined a comprehensive plan for India to overcome its economic challenges and realize its vision of becoming a developed nation by 2047. However, achieving this ambitious target will require bold reforms, strategic investments, and unwavering commitment from all stakeholders.

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