Prime Minister Narendra Modi has set an ambitious vision for India to achieve developed nation status by 2047, marking the centenary of independence. At the core of this vision lies a robust manufacturing sector, poised to transform into a global powerhouse. Contributing 17% to the GDP currently, India’s manufacturing industry is projected to touch €920 billion ($1 trillion) by 2025-26. With strategic growth in automotive, engineering, chemicals, and pharmaceuticals, the sector is set to export 20% of its GDP by 2030. India’s aspiration to become a $5 trillion economy by 2030 hinges on a critical factor: the transformation of its 450 million blue-collar workers into a skilled and adaptable labor force, ready to meet the demands of an evolving global economic landscape. This workforce empowerment will be the backbone of India’s journey toward economic dominance and sustainable growth.
India is setting ambitious policy targets to bolster its economic growth while ensuring sustainability and inclusivity. Here’s an overview of the key initiatives shaping the nation’s trajectory:
1. Economic Stability and Inflation Control
- The RBI aims to maintain inflation at 4%, with a permissible deviation of ±2%, ensuring price stability in the medium term.
2. Sustainability Commitments
- Net-Zero Goals: As part of its INDC, India is targeting net-zero emissions by 2070.
- Green Hydrogen Mission: Aims to produce 5 MMT of green hydrogen annually by 2030.
- Emission Intensity Reduction: India is committed to a 45% reduction in emissions intensity by 2030 (base year: 2005).
- Non-Fossil Energy Goals: Plans to generate 50% of its electric power from non-fossil sources by 2030, reaching a capacity of 500 GW.
3. Industrial and Energy Advancements
- Coal Gasification: Targeting the gasification of 100 MT of coal by 2030 to reduce imports.
- Ethanol Blending: Setting a 20% ethanol blending target by 2025–26.
- Natural Gas Expansion: Aiming to increase its share in the energy mix from 6.7% to 15% by 2030.
- Domestic Steel Production: Plans to produce 500 million tonnes of steel by 2034.
4. Strategic Investments and Global Aspirations
- Defence Sector: Aims to spend ₹3 lakh crore on defence production and achieve ₹50,000 crore in exports by 2029.
- Indian Space Station: Plans to establish a space station by 2035, cementing India’s 2% global market share in space.
5. Social Empowerment and Education
- Lakhpati Didis Initiative: Focused on raising 3 crore SHG (Self-Help Group) households to an annual income of ₹1 lakh within three years.
- Education: Committed to increasing public investment in education to 6% of GDP.
6. Trade and Fiscal Goals
- Foreign Trade Target: Aspiring to achieve $2 trillion in exports by 2030.
- Fiscal Consolidation: Reducing the fiscal deficit to below 4.5% of GDP by FY 2025–26, down from 5.6% in FY 2023–24.
7. Digital Transformation and Startups
- AI and Emerging Technologies:
- India ranks among the top 10 nations globally in AI readiness.
- The country has the second-largest pool of AI specialists and the third-highest number of AI research publications worldwide (as per a BCG report).
- India’s Digital Economy:
- A strong digital foundation, supported by affordable 4G/5G services and government initiatives, is driving India towards a $1 trillion digital economy by 2028.
- Unified Payments Interface (UPI) is a global success story, boosting digital payments and accelerating economic growth.
- Internet Subscriber Growth:
- Internet subscribers in India increased from 954.4 million in March 2024 to 969.6 million in June 2024, marking a 1.59% quarterly growth.
- Out of the total, 927.56 million relied on wireless internet, while wired internet accounted for 42.04 million connections.
- Startups Ecosystem:
- India has the third-largest startup ecosystem globally.
- It is home to over 100 unicorns, reflecting its dynamic entrepreneurial landscape.
Summary:
India stands at a pivotal moment in its growth journey, with a strong foundation built on ambitious policy initiatives, strategic investments, and a vibrant demographic dividend. The nation’s commitment to infrastructure development, renewable energy expansion, digital transformation, and financial inclusion underscores its readiness to emerge as a global economic powerhouse. With policies like the Production Linked Incentive (PLI) scheme, Smart Cities Mission, and Digital India, India is not just preparing for the challenges of tomorrow but actively shaping its future.
However, achieving these goals requires sustained focus on innovation, skill development, and bridging socio-economic disparities. A balanced approach that aligns economic growth with environmental sustainability and social equity will ensure long-term success. As the world’s fastest-growing major economy, India’s strategic policy framework and global collaborations will undoubtedly play a critical role in driving its transformation into a $10 trillion economy by the next decade. The stage is set, the engines are revving, and India is poised to lead the world in the 21st century.
Source: PIB India