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Source: The post On NITI Aayog’s Vision @2047 is based on the article “India in 2047- Policy adjustments can enable higher growth” published in “Business standard” on 31st October 2023.
UPSC Syllabus Topic: GS Paper 3 Indian economy – Issues relating to Growth and Development.
News: This article discusses the NITI Aayog’s goal for India’s economy to hit $30 trillion by 2047, requiring a 9% yearly growth. It also highlights the major challenges in achieving this target, and the importance of investing in education and renewable energy.
What is India’s vision@2047?
India’s Vision@2047:
Amrit Kaal: Period between 75th and 100th independence anniversaries symbolizing transformative growth.
Viksit Bharat@2047: Aim to become a developed nation by 2047 through a collective ‘Team India’ approach.
Balanced Economic Growth: Focus on both macro-economic growth and micro-level welfare.
Technological Advancements: Promote digital economy, fintech, and technology-enabled development.
Environmental Commitment: Prioritize energy transition and proactive climate action.
Investment Strategy: Public capital investment to stimulate private investments.
Saptarishi Principles:
1) Ensure Inclusive Development.
2) Benefit even the most remote areas.
3) Develop infrastructure and encourage investment.
4) Tap into national strengths.
Advocate for sustainable, green growth.
- Empower the youth.
- Strengthen the financial sector.
What will NITI Aayog’s Vision @2047 document include?
Based on India’s vision for 2047, Niti Aayog is preparing a document to ensure that India can achieve their goal within the given time.
Economic Target: Aim to become a $30 trillion economy by 2047 with a per capita income between $18,000-20,000.
Sectoral Focus: It includes 10 sectors like rural and agriculture, infrastructure, technology, and governance.
Structural Changes: Highlight reforms to achieve the economic target and address overlaps in roles of different ministries and departments.
Global Engagement: Details of India’s role in global trade, investment, technology, research, and development will be included.
Indian Companies: Identify potential Indian businesses that could become global leaders and strategize their growth ecosystem.
Human Capital: Insights on developing human resources and leveraging India’s market size.
Addressing Disparities: Strategies to address regional economic disparities.
Milestones: Provide a roadmap detailing India’s positions in 2030 and 2047.
Governance: Recommendations to modernize bureaucracy, emphasizing strategic ideation over traditional paperwork.
What challenges lie ahead in achieving a $30 trillion economy by 2047?
Global Economic Factors: Global growth is expected to remain below average. Additionally, some economists predict higher U.S. interest rates for longer durations due to structural factors.
Manufacturing Constraints: Despite numerous attempts, India hasn’t achieved the desired manufacturing output levels. This limitation affects quality job creation, essential for boosting consumption and sustaining growth.
Trade Hurdles: India’s trade strategy, characterized by higher tariffs with fiscal incentives for big producers, might be ineffective in the long run. There’s an anticipated trade deficit of over $3 trillion by 2047.
Infrastructure and Finance: The government’s increased post-pandemic capital expenditure is improving infrastructure but delaying fiscal consolidation. Such continuous high budget deficits and public debt could restrict government interventions.
What should be done?
Review Growth Strategy: Policymakers should conduct regular reviews and make necessary adjustments to achieve the 9% annual growth target.
Invest in Education and Health: Allocate more resources to education and health sectors. A skilled workforce is key for long-term growth.
Focus on Renewable Energy: Increase investments in renewable energy. This will reduce import dependence and make growth sustainable.
Monitor Fiscal Consolidation: While post-pandemic capital expenditure is crucial, there’s a need to balance it with fiscal consolidation to manage deficits and public debt.
Question for practice:
Critically examine the feasibility of India’s Vision@2047 in light of global economic challenges, manufacturing constraints, and its current trade strategy.
