[Answered] To become a developed nation by 2047, India needs new economic ideas beyond the IT sector. Examine the potential new drivers of growth and policies required for inclusive and sustainable economic transformation.

Introduction

India’s aspiration to become a developed nation by 2047 necessitates transcending IT-driven growth. This demands identifying new growth drivers aligned with global shifts and crafting a robust, inclusive, and sustainable policy ecosystem.

Why IT-Led Growth Has Plateaued

1. The IT sector created a robust middle class and powered exports (~$250 billion in 2023).
2. However, automation, AI, and global protectionism are reducing low-end service jobs.
3. According to NASSCOM, India may lose up to 30% of IT jobs due to AI by 2030.
4. Heavy regional and class concentration limited the sector’s trickle-down effects.

Emerging Global Context: New Constraints and Opportunities

1. Geoeconomic fragmentation: Weaponisation of trade (e.g., rare earth bans by China, US-China decoupling) calls for diversified global supply chains.
2. De-globalisation: Trade-to-GDP ratio has stagnated globally; India must look inward to grow domestic capabilities.
3. Technological transitions: From green hydrogen to semiconductors, new sectors are emerging.
4. Climate transition: Green industrial policy can attract capital and create jobs.

Potential New Drivers of Growth

1. Manufacturing-Led Industrialisation: PLI schemes aim to build capabilities in electronics, pharma, solar, autos. But they must broaden to MSMEs and labour-intensive sectors. Example: Vietnam’s textile sector thrived due to global integration + local capability.
2. Green Economy and Energy Transition: India targets 500 GW non-fossil capacity by 2030. Solar, wind, green hydrogen, EVs can create jobs, reduce imports, and meet climate targets.  IRENA estimates India can generate 3 million new green jobs by 2030.
3. Digital Public Infrastructure (DPI): UPI, Aadhaar, and ONDC offer scalable, inclusive platforms for micro-entrepreneurship, rural commerce, and governance. India Stack model is now being exported to other developing nations.
4. Agritech and Rural Transformation: Boosting productivity, reducing post-harvest loss, and improving market access via FPOs, digitization, and irrigation. Example: PM-KISAN + eNAM + drone tech = rural digital revolution. Agri exports (e.g., Basmati, spices) can be enhanced with better logistics and branding.
5. Tourism and Cultural Economy: With G20 hosting and soft power (Yoga, Ayurveda), India can scale tourism and creative sectors. Tourism adds 6.8% to GDP but remains underdeveloped.
6. Care Economy and Services: India’s demographic dividend includes a growing elderly population, needing health, caregiving, and social services. Expanding education and healthcare infrastructure can create 20–25 million jobs by 2030 (NITI Aayog estimates).

Policy Priorities for Inclusive and Sustainable Transformation

1. Human Capital Investment: NEP 2020, skilling in AI, green tech, and vocational education.
2. Labor and Regulatory Reforms: Ease of doing business, formalization of workforce, and labor code rationalization.
3. Decentralization and State-Level Growth Models: States must be empowered as growth labs.
4. Urbanization and Infrastructure: Smart cities, logistics corridors, mass transit, and housing need long-term investment.
5. Innovation Ecosystem: Strengthening startups, R&D (currently <1% of GDP), and patent pipelines.

Conclusion

Becoming a developed nation by 2047 demands bold new economic thinking, strategic investments, and an elite development compact focused on inclusive growth beyond IT — rooted in sustainability, innovation, and equity.