Viksit Bharat by 2047 should be the goal of every citizen and all stakeholders

While physical and social infrastructures have been getting greater attention, there have been attempts to direct state-level reforms and improvements in governance and ease of doing business as well better rural, urban infrastructure and better living conditions

Now that the Union Budget 2024-25 has been presented, expectations of the people will be that the new government will function for a marked improvement in the standard of living, greater growth opportunities, which can be possible by keeping the trajectory of higher real GDP growth.

It is absolutely essential for the world to make good the lost ground and commit itself for achieving the Sustainable Development Goals (SDGs) by 2030. One of the global priorities ought to be on bridging the wide difference between developed, less developed and low-developing economies.

Even the gap between the rich and poor needs to be shortened by inclusivity and providing an ecosystem aimed at the all-round of development, including at the bottom of the pyramid.

Prime Minister Narendra Modi’s vision of Viksit Bharat by 2047 should become the inherent goal of every citizen and all stakeholders, including public and private sectors.

Different forecasts are available for 2047 in terms of the size of the economy and everyone feels that the demographic dividend by way of the young population in the 29 to 37 years age-group will India reap maximum benefits in terms of positive contribution by youth, including women.

The Viksit Bharat @2047 expectation of reaching $30 trillion requires new growth drivers as well as higher contribution from the existing ones.

In terms of per capita income, which is the most important indicator of benefits of higher GDP getting benefits at all levels, Nitin Aayog expects it to cross $18,220 from the current level of $ 2,392 and ensure that the developed economy goals will materialize. As per World Bank standards high income countries are those where the annual income is more than $14,005. In terms of size, India is already the fifth largest economy. It needs to cross the size of $ 5 trillion economy by 2027 to emerge as the third largest economy.

This vision needs substantial resources and investment by way of enhanced savings and greater public and private sector investments. A good factor in this direction is that India has become the preferred destination for flow of large foreign direct investments. Therefore, it is crucial that the Centre and states create an environment that fits the bill by ease of doing business and suitable positive policies like the Centre’s PLI, which is finding great positive impact. These can help put in place the best possible physical infrastructure and industrial corridors. That can happen if assured of uninterrupted power, particularly alternative energy, and a better skilled workforce. This will boost FDIs and domestic investment and ensure real GDP growth on a sustainable basis.

The targetted $30 trillion economy needs an enhanced GDP growth of up to 10 per cent on a continuous basis year after year, which is possible looking to the potentiality of the economy and vast resources both land, capital and labour that are available in plenty. They should be backed by favourable policies and growth-inclined economic action. It is also necessary to concentrate on consumption and investment-led growth as well as export related growth both in manufacturing and services, which India possesses. The current initiatives are already giving benefits, which need to be accelerated and sustained with a greater momentum.

The current skilling programme as envisaged in the budget both by the government and private sector participation is a must to make the young work force employable by suitable industrial training and apprenticeship program.

Another important factor is participation of women, which in the recent past has shown good growth with the current level standing at 37 per cent. However, this has to be enhanced as that will add significantly to GDP given that Nitin Aayog envisages reaching 70 per cent by 2047.

The current budget has provided for women participation. This should be made use of in real earnest.

Budget 2024-25 had made a special mention of ‘next generation reforms’. This is a good decision as we strive towards Viksit Bharath, we need to have different and innovative perspectives and action plans at various levels, including the Centre, state and grass-root levels.

The Union Finance Minister has stated that the government will establish a comprehensive economic policy framework to guide the nation's development, focussing on better productivity and market efficiency. The framework will address all factors of production, including land, labour, capital and entrepreneurship with technology playing a critical role in improving productivity and reduced inequality.

One of the important factors successive budgets have been focussing on is quality of expenditure and conserving costly resources for more productive use and on capex, which has a multiplayer impact. While physical and social infrastructures have been getting greater attention, there have been attempts to direct state-level reforms and improvements in governance and ease of doing business as well better rural, urban infrastructure and better living conditions. The other focus on reducing green gas emissions by focussing on alternative energy has gained further momentum in the budget in tune with India's commitment to sustainable development, by way of a comprehensive approach to energy transition, climate adaptation and mitigation.

The nine priority areas covered in the budget include productivity and resilience in agriculture, employment and skilling, inclusive HRD and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, R&D and the next generation reforms. Together they are perfect initiatives and action plans for a strong foundation for India's Viksit Bharat quest. Hope there will be perfect execution and monitoring of these plans with thrust on productive use of the resources to take India to a new growth path on sustainable and inclusive basis.

(The author is former Chairman & Managing Director of Indian Overseas Bank)