Prime Minister Narendra Modi is set to reveal a comprehensive plan in December that outlines India’s medium-term development objectives and milestones. This plan will also influence the reform agenda of the ruling National Democratic Alliance and their campaign for re-election in the upcoming year.
Extensive efforts are currently underway to evaluate the development path of critical sectors and identify barriers to growth. These efforts aim to establish a collaborative approach, with the active participation of states, in the spirit of “Team India,” according to a media report.
The federal policy think tank, NITI Aayog, is leading the effort to create this blueprint, with the assistance of a high-level committee of secretaries.
The central focus of this vision document is to achieve the status of a developed country by 2047. It places a strong emphasis on inclusive and eco-friendly growth, the promotion of emerging industries, and the sustained development of infrastructure. Additionally, it pays special attention to the rural economy and the income of farmers.
This vision document, which marks the end of Modi’s second term, also aims to enhance governance and service delivery for the citizens. Economic development and human development will continue to be the central pillars of this blueprint. It will also prioritise the empowerment of women, increasing female participation in the workforce, and supporting micro, small, and medium-sized enterprises.
The status of a developed country is typically defined by a per capita income of USD 13,000. Based on the projected nominal GDP of Rs 301 trillion and an exchange rate of Rs 83 to a dollar, India’s per capita income is estimated to be around USD 2,500 in FY24.
Despite attempts to accelerate economic growth by expanding India’s share of global production and trade, there are several challenges on the horizon. These include global financial uncertainties, geopolitical factors, decreased global demand, and fluctuations in global energy, fertiliser prices, and exchange rates.
On the domestic front, while increased government spending is boosting economic activities, there is a need for rural consumption to catch up. Policymakers are hopeful for a resurgence in private investments, indicated by increased production and capital goods imports, and bolstered by healthier balance sheets of corporations and banks.
Experts stress the importance of addressing structural issues to ensure balanced growth. Enhancing labour and capital productivity is critical for the sustained, robust growth of the economy.
The Vision 2047 document places a significant emphasis on building 21st-century infrastructure. The government has identified 16 critical areas of infrastructure, including roads, ports, and railways, for continued investment from both the public and private sectors.
One of the targets is to construct a network of 50,000 kilometres of highways, including about 35,000 kilometres of access-controlled roads, over the next two decades, with an investment of over Rs 20 trillion. Additionally, the blueprint envisions the development of a world-class railway system and the establishment of India as a global maritime power.