Syllabus: Economics
Source: IE
Context: India aims for developed nation status by 2047 under the Viksit Bharat vision. However, challenges like slower growth, high taxes, and declining foreign investments risk hindering progress.
Targets of India for Viksit Bharat 2047:
- Economic Growth: Achieve a sustained GDP growth rate of 7-8% annually.
- Social Equity: Eradicate poverty, ensure universal healthcare, and provide quality education.
- Global Competitiveness: Position India among the top three global economies.
- Environmental Sustainability: Attain net-zero emissions by 2070 while enhancing renewable energy adoption.
- Industrial Modernization: Boost manufacturing to contribute 25% to GDP under Make in India.
India’s Economic Performance 2024:
| Sector/Indicator | Key Highlights |
| GDP Growth | GDP growth slowed to 5.4% (July-September 2024), below the RBI’s 7% projection. |
| Services Sector | Contributed 54.72% of GVA, valued at ₹146.44 lakh crore in 2023-24, making it the largest economic driver. |
| Industry Sector | Accounted for 27.62% of GVA; notable challenges include record-high steel imports from China affecting domestic producers. |
| Agriculture Sector | Contributed 17.66% of GVA; displayed resilience with strong agricultural output. |
| Inflation | Retail inflation increased to 6.21% in October, breaching RBI’s tolerance band. |
| Monetary Policy | RBI retained interest rate at 6.5%, cut cash reserve ratio by 50 basis points, injecting ₹1.16 trillion into the economy. |
Government Initiatives for Viksit Bharat
- Make in India and Aatmanirbhar Bharat: Promote domestic manufacturing and reduce import dependency.
- PLI Schemes: Financial incentives for key sectors like electronics, pharma, and textiles.
- PM Gati Shakti Master Plan: Integrates infrastructure projects across sectors for faster development.
- Digital India: Expands internet access, boosts fintech adoption, and supports e-governance.
- National Education Policy (NEP 2020): Reforms in education to create a skilled workforce.
- Green India Mission: Focus on renewable energy and sustainable urban development.
Challenges India Faces:
- Economic Inequalities: Regional and income disparities hinder inclusive growth.
- Infrastructure Gaps: Delayed implementation of key projects affects connectivity.
- Policy Uncertainty: Retrospective tax policies and weak enforcement of reforms deter investors.
- Global Risks: Economic slowdown and geopolitical tensions impact trade and investments.
- Environmental Concerns: Balancing industrial growth with ecological sustainability remains critical.
Way Ahead:
- Policy Reforms: Ensure consistency in fiscal and monetary policies to attract investments.
- Skill Development: Bridge the education-employment gap by focusing on industry-relevant skills.
- Boost Exports: Enhance global trade partnerships and competitiveness in manufacturing.
- Rural Development: Strengthen healthcare, education, and infrastructure in rural areas.
- Green Transition: Scale up renewable energy capacity and adopt sustainable practices across industries.
Conclusion:
India’s vision for Viksit Bharat 2047 is ambitious but achievable with sustained efforts in policy, innovation, and social inclusion. By addressing challenges strategically, India can emerge as a global leader in economy and sustainability, ensuring equitable growth for all.
Insta Links:
PYQ:
- Increase in absolute and per capita real GNP do not connote a higher level of economic development, if: (UPSC-2018)
- Industrial output fails to keep pace with agricultural output.
- Agricultural output fails to keep pace with industrial output.
- Poverty and unemployment increase.
- Imports grow faster than exports.
Answer: c)
- In a given year in India, official poverty lines are higher in some States than in others because: (UPSC-2019)
- Poverty rates vary from State to State
- Price levels vary from State to State
- Gross State Product varies from State to State
- Quality of public distribution varies from State to State
Answer: b)
