Winning Bizness Desk
Mumbai.The Economic Survey 2024-25, released by the government, estimates that India’s GDP growth rate could be between 6.3% and 6.8% for the financial year 2026. However, a key question remains—can this growth rate fulfill Prime Minister Narendra Modi’s vision of a developed India by 2047? The survey answers this by stating that India needs a much higher growth rate to achieve this ambitious goal.
8% Growth Required for a Developed India
According to the Economic Survey, India must grow at an average rate of 8% annually for the next two decades to become a developed nation by 2047. Achieving this goal will require significant reforms in key areas such as land and labor.
The survey states that for India to sustain this level of growth, the investment rate must increase from the current 31% of GDP to 35%. Additionally, the manufacturing sector must expand, and there must be substantial investments in emerging technologies such as artificial intelligence (AI), robotics, and biotechnology.
Employment Generation: The Key Challenge
India needs to create approximately 7.85 million (78.5 lakh) non-agricultural jobs annually by 2030-32. To achieve this, the country must also work towards 100% literacy, improve the quality of educational institutions, and develop high-quality, future-ready infrastructure on a large scale.
The survey emphasizes that rapid economic growth is only possible if both central and state governments continue implementing reforms that allow small and medium enterprises (SMEs) to operate efficiently and compete in a cost-effective manner. Economic policies should now focus on structured and systematic regulation rather than excessive bureaucratic control.
Reforms Needed for Sustainable Growth
The survey suggests that regulatory burdens should be kept to a minimum, as small and medium enterprises often lack extensive managerial and financial resources. It highlights several key areas requiring systematic reforms, including land acquisition, labor laws, building regulations, utilities, and public service delivery.
The Economic Survey also emphasizes that the Ease of Doing Business (EoDB) 2.0 initiative should be led by state governments. It should focus on eliminating root-level barriers that make business operations difficult. While the central government sets primary laws, states have the authority to amend subordinate regulations and remove unnecessary restrictions.
The survey advises state governments to explore these opportunities while identifying areas where regulatory frameworks can be streamlined to enhance economic productivity.
With continued reforms, increased investments, and a strong focus on technological advancements, India aims to accelerate its journey toward becoming a developed economy by 2047.
