• UGI USER
  • Jun 13, 2024
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A BLUEPRINT FOR INDIA’S SUSTAINABLE AND INCLUSIVE GROWTH BY 2047

Syllabus:

  • GS-2- Trade and Commerce with countries, Autonomy and its impact on economy and society
  • GS-3-Indian economy and planning

Focus :

  • India’s path to becoming a developed economy by 2047 requires a sustainable and inclusive growth strategy. This involves boosting rural consumption, balancing fiscal prudence with growth-centric policies, investing in physical and digital infrastructure, and fostering innovation in sectors like agriculture, education, R&D, and manufacturing while addressing climate change challenges.
Source - TET

Introduction

  • Current Growth: India is experiencing a GDP growth rate exceeding 7% for the third consecutive year.
  • Challenges: Geopolitical tensions, climate change, and accelerated innovation necessitate a fresh approach.
  • Long-Term Vision: The goal is to develop a sustainable and inclusive economy by 2047.

Boosting Rural Consumption

  • Immediate Need: Enhancing rural consumption is crucial for short-term economic boosts.
  • Balanced Fiscal Policy: Avoiding a disconnected fiscal policy that could lead to untenable debt levels.
  • Conscious Infrastructure Development: Addressing both physical and digital infrastructure while considering societal needs and environmental challenges.
  • Customized Strategy: Creating strategies tailored to India’s unique needs, balancing fiscal prudence and growth.

Investment in Agricultural Infrastructure

  • Government’s Role: The government has led infrastructure development, showing potential for growth.
  • Private Sector Involvement: Encouraging private sector participation through alternative partnership models.
  • Agri-Infrastructure Development: Reducing wastage, improving farmer incomes, and contributing to food security and the rural economy.
  • Gross Capital Formation: India’s gross capital formation-to-GDP ratio indicates clear potential for faster growth.

Innovative Funding Mechanisms

  • Institutional and Retail Capital: Designing funding instruments to address funding gaps and drive growth.
  • Successful Models: Instruments like InvITs and REITs have shown success internationally.
  • Corporate Social Responsibility (CSR): Encouraging corporates to manage specific districts, improving access to credit, technology, and equipment.
  • Inclusive Growth: Expanding rural incomes, creating jobs, and promoting inclusive economic growth.

Investment in Human Capital

  • Demographic Dividend: Leveraging India’s demographic advantage requires focused investments.
  • Industry-Relevant Learning: Upgrading the education system through practical, industry-relevant training.
  • Collaboration: Government, industry, and educational institutions should collaborate to bridge skill gaps.
  • Research and Innovation: Creating dedicated research institutes or innovation centers to foster upskilling and entrepreneurship.

Enhancing Research and Development (R&D)

  • Public and Private Investment: Boosting R&D spending, especially in AI, biotech, and renewable energy.
  • Industry Talent: Combining industry-ready talent with regulatory support.
  • Innovation Hubs: Establishing plug-and-play research hubs to share resources and knowledge with MSMEs.
  • Global Positioning: Positioning India as a leader in innovation, improving productivity, and creating new products and services.

Strengthening Manufacturing Capabilities

  • Government Initiatives: Building on government efforts to support the manufacturing sector.
  • Capital Attraction: Attracting both domestic and foreign capital to strengthen manufacturing.
  • Global Supply Chains: Leveraging opportunities from global supply chain diversification.
  • Industry-Specific Clusters: Investing in ancillary industries and creating regional clusters to build a robust manufacturing ecosystem.

Addressing Climate Change

  • Inclusive Growth: Ensuring that growth initiatives are environmentally sustainable.
  • Decarbonization Targets: Meeting global decarbonization targets to mitigate climate change impacts.
  • Green Projects: Funding and supporting green projects and sustainability-focused innovations.
  • Clean Technologies: Developing clean technologies, green materials, and carbon capture solutions.
  • ESG Reporting: Implementing mandatory ESG reporting to ensure responsible practices across supply chains.

Conclusion

  • Effort and Coordination: Achieving these goals will require concerted efforts and leveraging India’s full potential.
  • Whole-of-Society Progress: Driving economic growth in a manner that benefits all sectors of society.

Source:The Economic Times

Mains Practice Question :

GS-2

“Discuss the key strategies that India should adopt to achieve sustainable and inclusive growth by 2047. How can the country balance fiscal prudence with growth-centric policies, and what role do investments in infrastructure, human capital, and climate resilience play in this vision?”(250 words)