World Bank’s Growth Roadmap for India

Growth Imperatives

Average GDP Growth Rate Required: India must sustain an average GDP growth of 7.8% for the next 22 years to attain high income status by 2047 as per World Bank.

Current Growth Path

For the 2000-2024 time period, India’s economy grew at an average annual growth rate of 6.3%.
The last three years’ growth was at 7.2%, demonstrating a strong momentum forward.

Pillars of Economic Transformation

• Infrastructure Development Investments Capital Investment
  • This will require an investment to GDP ratio increasing from 33.5% to 40% by 2035 to sustain economic growth.
  • Infrastructure Development: Transport, power, and digital connectivity improvements meant to improve efficiency and attract foreign direct investment (FDI).
  • Supply Chains and Manufacturing: Strengthen India’s position in the global value chain through initiatives such as “Make in India” and the Production Linked Incentive (PLI) scheme.
• Enhancing Labour Force and Human Capital Labour Participation
  • Raise workforce participation all the way from 56.4% to 65%+.
  • Increase female participation in the labour force from 35.6% to 50% by 2030.
• Education and Skill Development
  • Strengthening vocational education and training and upskilling the workforce for Industry 4.0 and AI based economies.
  • Greater access to higher education, STEM, and digital literacy.
• Innovation, Technology, and Digital Economy Technology Utilization
  • Promote widespread adoption of AI, blockchain, and automation across various industries.
  • Startup Ecosystem: Foster creation of start up companies through policy incentives and access to venture capital.
    Digital Economy: Make digital goods and services cheaper so as to minimize the difference from India’s apparently macro digital economy (3rd largest in the world) to user economy (28th in the world).
• Global Trade and Economic Integration Export Base Expansion
  • Work towards strengthening trade agreements and FTAs with the EU, ASEAN, and African markets.
  • Ease of Doing Business: Rules and regulations for promoting foreign direct investment need to be given a pass.
  • Promote Domestic Consumption: Allow income distribution to improve internal demand.
• Regional Growth and Imbalance Decentralized Growth Strategy
  • States should be encouraged to evolve and use state based economic policies.
  • Urban Rural Balance: Forge an equilibrium between agricultural productivity and urban infrastructure development.

Source: The Hindu