On NITI Aayog’s Vision @2047 – India in 2047

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.

1. Empower the youth.
2. 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.