Strategies for India’s new government to boost economic growth

Source: The post various strategies for India’s new government to boost economic growth has been created, based on the article “As the election results come in, an agenda for the next government” published in “Indian Express” on 5th June 2024.

UPSC Syllabus Topic: GS Paper 3 – Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment

Context: The article discusses various strategies for India’s new government to boost economic growth. It also suggests keeping in mind the rapidly changing global backdrop while taking these steps.

For detailed information on India’s economic outlook and strategies read this article here

What is the current status of the global economy?

1. Shift in Economic Policies: Moving from globalization to protectionism.
2. Economic Stimuli: Reduced fiscal stimulation and persistently high interest rates.
3. Environmental and Technological Impacts: Adverse effects on businesses due to stricter environmental considerations and technological disruptions.

What steps should be taken by the new government to boost economic growth?

1. Address Disguised Employment in Agriculture: Shift workforce to industries or services to reduce underemployment in agriculture.
2. Reduce Manufacturing Costs: Use increased PSU market cap for strategic divestments to absorb subsidies in power and logistics, enhancing manufacturing competitiveness.
3. Boost Consumption: Implement a gold monetization scheme to bring hidden gold into the mainstream economy, thus boosting liquidity and consumer spending.
4. Develop Agriculture: Expand successful cooperative models like Amul to other commodities and increase exports, as seen with the Netherlands’ success in agri-products.
5. Promote Free Labor Movement: Include labor movement clauses in Free Trade Agreements to enhance remittances and support Indian workers abroad.
6. Enhance Skills: Establish institutions like the plumbing institute in Odisha to supply skilled labor both domestically and internationally.
7. Expand Manufacturing through PLI Schemes: Focus on sectors like garments, automobiles, and jewelry to create jobs and increase exports.
8. Support Services Sectors: Develop tourism, education, and healthcare through integrated approaches and engage the diaspora as brand ambassadors.
9. Unlock Investment in Infrastructure: Improve judicial infrastructure and streamline land acquisition and labor laws to attract more investment.
10. Enhance Judicial Infrastructure: Reduce case backlogs and improve the rule of law to attract more investment.
11. Simplify Doing Business: Implement reforms in land acquisition and labor laws and create special economic zones.
12. Foster Technology Investment: Quickly operationalize funds for future technologies like artificial intelligence and pharmaceutical research.
13. Advocate for Environmental Compensation: Pursue international compensation for India’s low per capita carbon emissions compared to historical contributions.
14. Implement Responsible Mining Policies: Balance local interests and industrial needs, especially in states like Odisha.
15. Improve Education and Healthcare: Utilize technology and public-private partnerships to enhance service quality and accessibility.
16. Educate Investors: Increase financial literacy to prevent poor investment choices like cryptos and Ponzi schemes.
17. Promote Sustainable Practices: Leverage green energy and push for global cooperation on environmental issues.

For detailed information on the new government in India needs to focus on Indian economy read this article here

Question for practice:

What are the primary strategies for India’s new government to boost economic growth.