VISION INDIA@2047: TRANSFORMATIVE ROADMAP
Prime Minister’s Roadmap:
- Expected in early 2024, the Prime Minister plans to unveil Vision India@2047, aiming for a developed nation with a USD 30 trillion economy by India’s 100th year of Independence.
- Initiated by NITI Aayog, India’s apex policy think tank.
- A two-year effort involving diverse ministries to strategize the country’s developmental trajectory.
Source: The Hindu
Objectives of Vision India@2047
- Goal:
Achieve a USD 30 trillion economy with a per-capita income of USD 18,000-20,000.
- Key Focus :
| a) On building world-class infrastructure |
| b) Eliminating unnecessary government interference |
| c) Developing global champions in various sectors |
- Aims:
| a) To be self-reliant in defense and space |
| b) Foster green growth |
| c) Empower the youth, |
| d) Enhance global research collaboration. |
Current Status and Future Prospects of Indian Economy
- India ranks fifth in nominal GDP and third in PPP terms.
- Forecasts predict India surpassing Japan and Germany by 2030.
- S&P estimates India’s nominal GDP to rise from USD 3.4 trillion in 2022 to USD 7.3 trillion by 2030.
Factors Driving Economic Growth
- Demographic Dividend: Large, young population contributing to a skilled workforce.
- Growth of the Middle Class: Projected to expand from 50 million in 2023 to 500 million by 2050.
- Accelerated Digital Economy: Embracing digital transformation in various sectors.
Challenges and Considerations
- Middle-Income Trap: Concerns about potential stagnation after reaching a certain income level.
- Ageing Population: Addressing challenges associated with an ageing population.
- Sustaining High GDP Growth: Striving for sustained growth rates to meet ambitious economic goals.
Strategies for Economic Growth
- Divestitures: Aim for efficient privatization of the public sector.
- Middle Class Boost: Consider tax reforms to increase disposable income.
- Labor Force Participation: Invest in education and skill development.
- Infrastructure Development: Accelerate execution of the National Infrastructure Pipeline.
- Manufacturing Momentum: Leverage initiatives like the production-linked incentive (PLI) scheme.
- Private Investment: Attract foreign and domestic investment through incentives.
- Structural Reforms: Targeted reforms to enhance productivity and competitiveness.
Focusing on structural reforms and foreign direct investment is essential for sustained economic growth.