Context

• India’s journey toward becoming a developed nation by 2047 builds on the landmark 1991 economic reforms, which liberalized the economy and unlocked growth. Today, India faces a transformed global landscape—marked by rising protectionism, disrupted supply chains, and energy insecurity. Meeting these challenges requires self-reliant strategies rooted in domestic productivity and resilience. With a growing youth population, India must generate 78.5 lakh non-farm jobs annually until 2036, while adapting to geopolitical shifts and climate imperatives. A renewed policy focus on deregulation, industrial expansion, and collaborative governance is vital to achieving this vision

1. Deregulation to Foster Economic Growth 

• Legacy of 1991 Reforms:
  Dismantled the Licence Raj, opened India to globalization, and laid the foundation for a competitive market economy.
• Reform Measures Since 2014:

• Rationalized over 20,000 compliances.
• Decriminalized and simplified 300+ laws related to business operations.
• Introduced major structural reforms:
  Goods and Services Tax (GST)
  Insolvency and Bankruptcy Code (IBC)
  Real Estate Regulation Act (RERA)
  India Stack (UID, UPI, DBT) for digital governance and leak-proof service delivery.

• Ease of Doing Business:
  • Economic Survey 2024–25 shows strong correlation between improved EoDB scores and higher industrial output across states.
  • Complex regulations hinder especially SMEs, reducing effective land use (e.g., 50% lost to building codes) and limiting scalability.
• Education System Challenges:
  • UGC and AICTE norms restrict curriculum flexibility.
  • Hinders adaptation of courses to market and industry needs.
• Budget 2025–26 Initiative:
  • Proposed a High-Level Committee for Regulatory Reforms, in collaboration with State Governments.
  • Mandate: Review and streamline all non-financial sector regulations to reduce burdens on businesses.
• Goals of Deregulation:
  • Enhance entrepreneurial freedom and competition.
  • Attract foreign and domestic investment.
  • Enable faster market entry and exit.
  • Minimize rent-seeking and corruption.
  • Improve institutional efficiency and innovation

2. Manufacturing as a Force Multiplier

• Historical Significance:
  Manufacturing has driven growth in ancient India (e.g., Cholas), 19th-century UK, 20th-century US, and post-1970s East Asia.
• China expected to account for 45% of global manufacturing by 2030, up from 6% in 2000.
• Why It’s a Force Multiplier:

• Vertical & Horizontal Linkages:
  • Builds integrated ecosystems (e.g., Vietnam’s fibre-to-fashion, Korea’s shipbuilding).
  • Promotes sectoral overlap and shared technology (as seen in China).
• Firm-Level Skilling:
  • Helps tap into unskilled youth by enabling on-the-job training.
• Improves Governance & Infrastructure:
  • Example: 19th-century Britain reformed governance post-industrialization (Hernando de Soto’s The Mystery of Capital).

• Need for Job Creation:
  • India must create 78.5 lakh non-farm jobs annually till 2036 to absorb its young population.
• Key Government Schemes & Initiatives:
  • Credit Guarantee Scheme for MSEs: Facilitated ₹1.38 lakh crore in financing.
  • Trade Receivables Discounting System (TReDS)
  • ULI Credit Scheme: Offers real-time credit risk assessments.
  • FY26 Budget:
    • National Manufacturing Mission.
    • Increased MSME thresholds.
    • Mutual Credit Guarantee Scheme: Covers 60% of loans for machinery up to ₹100 crore.
• Global Technology Trends:
  • India must lead in Industry 4.0, including AI, automation, semiconductors, and green energy.

3. Energy Security

• Contextual Challenges:

• Global transition from globalization to protectionism is reshaping energy supply chains.
• Climate adaptation is urgent for sustainability and economic resilience.

• Strategic Priorities:
  • Ensure affordable, reliable, and clean energy access.
  • Align energy transition with national goals, avoiding one-size-fits-all approaches.
• Key Initiatives:
  • National Green Hydrogen Mission: ₹19,744 crore outlay to make India a global hub for hydrogen production and exports.
  • PM-KUSUM: Promotes solar pumps for farmers, reducing diesel use and enhancing sustainability.
  • EV Policies & PLI Schemes: Encourage domestic production of batteries and EV components.
• Data Highlights:
  • Renewable energy’s share in installed capacity is over 40%.
  • Aim: Achieve 500 GW of non-fossil fuel capacity by 2030.
• Way Forward:
  • Invest in energy R&D, storage, and grid modernization.
  • Focus on energy justice: equitable access across urban and rural India.

4. Tripartite Compact: Government, Private Sector & Academia

• Need for Collaborative Governance:
  • Global innovation requires collaboration across sectors.
  • Break silos between policy, enterprise, and research.
• Successful Models & Examples:
  • Semiconductor Mission: Collaboration for chip manufacturing, skill-building, and supply chain development.
  • Startup India & Atal Innovation Mission: Promote innovation hubs, mentorship, and entrepreneurship.
• Policy Enablers:
  • Digital Public Infrastructure (DPI) like UPI and Aadhaar foster seamless collaboration.
  • PM Gati Shakti & National Logistics Policy: Optimize infrastructure via coordinated planning.
• Capacity Building:
  • Upskilling through Skill India Mission and PM Vishwakarma Yojana.
  • Boosts both traditional crafts and modern technical competencies.
• Long-Term Impact:
  • Builds an ecosystem of trust.
  • Encourages evidence-based policymaking.
  • Enhances domestic innovation and global competitiveness.

Conclusion: Toward a Prosperous, Resilient India

• The vision of Viksit Bharat @2047 rests on inclusive growth, technological leadership, and governance reform.
• Coordination between policy, market forces, and research ecosystems is essential to navigate global disruptions.
• India’s economic model must be sustainable, employment-generating, and globally competitive, ensuring no one is left behind