Economy and Infra Development
Economic growth and industrial development form the backbone of a developed nation. For India to achieve the Vision 2047 goal of becoming a developed nation, it must accelerate its industrialization, strengthen its economic frameworks, and create a self-reliant and globally competitive economy.
This dimension requires a dual focus: addressing current challenges and leveraging emerging opportunities. The right strategies can ensure sustainable, inclusive, and innovation-driven economic growth.
Current Scenario
Strong Growth Trajectory
India is on a strong economic growth path, currently ranked as the fifth-largest economy in the world and projected to climb to the third position by 2030. The service sector dominates the economy, contributing 55% of the GDP, while the manufacturing sector trails at a lower 17-18%. However, recent initiatives like Make in India, Atmanirbhar Bharat, and Production-Linked Incentive (PLI) schemes are beginning to transform the manufacturing landscape, driving exports and creating opportunities for industrial growth.
Industrial Base and Infrastructure
India boasts a diversified industrial base but contributes only around 3% to global manufacturing, highlighting the need for significant growth in this area. Infrastructure, a critical enabler of industrial development, has witnessed substantial improvements in transportation, energy, and digital connectivity. Despite these upgrades, challenges remain, particularly in ensuring seamless rural-urban integration and improving logistical efficiency across the nation.
Challenges
India’s industrial development faces several hurdles, including a high dependence on imports for critical components such as semiconductors and electronics. The country’s investment in research and development (R&D) is also significantly lower, standing at just 0.7% of GDP compared to 2.4% in China and 3.1% in the United States. Additionally, skill gaps in the workforce and low female labor force participation—currently at just 20%—pose significant barriers. The slow adoption of Industry 4.0 technologies, including automation, IoT, and AI, further limits the potential for modernization and efficiency in industries.
Global Trends and Risks
Global geopolitical shifts, such as US-China trade tensions, present India with a unique opportunity to position itself as a global manufacturing hub. However, seizing this opportunity requires addressing existing challenges and building competitive advantages. Simultaneously, the rise of green technologies and increasing global commitments to carbon-neutral practices necessitate a shift toward eco-friendly and sustainable industrial practices, ensuring that India’s growth aligns with global environmental goals.
Requirements for Economic Growth and Industrial Development
Strengthening Manufacturing and Exports
To enhance manufacturing and exports, India must expand its domestic manufacturing capabilities by incorporating advanced industries such as robotics, AI-driven production, and precision manufacturing under the Make in India initiative. Diversifying exports is critical, with a focus on high-value sectors like electronics, pharmaceuticals, and defense equipment. Simplifying regulations, reducing compliance burdens, and fostering a stable policy environment are essential to improve the ease of doing business and attract both domestic and foreign investments.
Building World-Class Infrastructure
Investments in transportation, energy, and urbanization are key to building world-class infrastructure. High-speed rail networks, expressways, and smart ports can significantly lower logistics costs, which currently account for approximately 14% of India’s GDP. A shift toward renewable energy sources such as solar, wind, and green hydrogen is necessary to power industries sustainably while reducing carbon emissions. Urbanization efforts should prioritize developing smart cities and integrating rural areas into the economic framework through improved connectivity and access to resources.
Promoting Technological Innovation
Increasing research and development (R&D) investments to at least 2% of GDP by 2030 is vital for fostering innovation and competitiveness. The adoption of Industry 4.0 technologies, including IoT, AI, robotics, and automation, can modernize industries and improve efficiency. A robust start-up ecosystem can be nurtured through funding, mentorship, and incubation centers to promote innovation and entrepreneurship across diverse sectors.
Fostering Human Capital
Developing a skilled workforce is essential to meet the demands of emerging industries like electric vehicles (EVs), semiconductors, and renewable energy. Policies must focus on improving gender inclusion in the workforce by providing flexible work options and ensuring safety measures for women. Aligning higher education curricula with industrial requirements will bridge the skill gap and create a workforce that is equipped to drive industrial growth.
Encouraging Green and Inclusive Growth
Adopting sustainable practices, such as energy-efficient and low-carbon technologies, is imperative for balancing industrial growth with environmental sustainability. Empowering micro, small, and medium enterprises (MSMEs) by providing access to credit, technology, and markets can enhance their contributions to the economy. A regional focus on industrializing lagging states and ensuring equitable development across the country will create a more inclusive and balanced growth framework.
Strengthening Global Competitiveness
To enhance global competitiveness, India must negotiate favorable trade agreements that open new markets for its products. Building a strong international brand for “Made in India” goods can showcase Indian quality and reliability on the global stage. Reducing dependency on imports, especially in critical sectors like defense, semiconductors, and electronics, will strengthen self-reliance and improve India’s strategic and economic resilience.
VisionViksitBharat for 2047
By 2047, India should aim to:
Become the World’s Manufacturing Hub: Increase manufacturing’s GDP share from 17% to 30%.
Achieve Export Competitiveness: Be among the top five global exporters with diversified and high-value offerings.
Create 100 Million Jobs: Drive industrialization to absorb the growing workforce and reduce poverty.
Lead in Green Technology: Achieve net-zero industrial emissions while maintaining high growth rates.
Ensure Inclusivity: Develop equitable industrial ecosystems that empower MSMEs, women, and marginalized groups.
Economic growth and industrial development are critical to India’s vision of becoming a developed nation by 2047. By addressing infrastructure gaps, promoting innovation, empowering human capital, and fostering sustainable practices, VisionViksitBharat can create a roadmap for transformative economic progress. This dimension calls for bold reforms, strategic investments, and the active participation of all stakeholders to ensure that India’s growth story remains robust, inclusive, and globally competitive.
We invite individuals from all sectors to join the VisionViksitBharat Forum and contribute to this transformative mission. Whether you are an industry expert, academic, student, or concerned citizen, your insights and participation are invaluable. To become a part of this dynamic initiative, we welcome you to fill out the joining form.
Together, let’s shape the future of an economically vibrant and self-reliant Bharat!