The Vision India@2047 Plan presents a forward-looking and comprehensive strategic framework that underscores the numerous benefits of strategic planning in shaping the future of a nation. This visionary plan is a testament to the power of foresight and well-defined goals. By setting clear objectives and a roadmap for the country’s development over the next few decades, it allows for a more organized and purposeful approach to national progress. Strategic planning, as exemplified in this plan, not only provides a sense of direction but also aligns various stakeholders towards a common purpose. Furthermore, it enables efficient resource allocation and prioritization of key initiatives, thereby optimizing the utilization of limited resources. Ultimately, the Vision India@2047 Plan illustrates the critical role strategic planning plays in fostering sustainable growth, fostering innovation, and ensuring that a nation’s future is built upon a solid foundation of progress and prosperity.
Tag: GS – 3 Growth & Development GS- 2 Government Policies & Interventions
This editorial delves into the government’s strategy for India’s development by 2047, set to be revealed by the Prime Minister in early 2024.
About Vision India@2047 Plan and its significance
- Vision India@2047 is an initiative launched by India’s top policy think tank, NITI Aayog, with the aim of charting a comprehensive development plan for the nation over the next 25 years.
- The project’s primary objectives encompass transforming India into a global leader in innovation, advancing human development and social welfare, and becoming a prominent advocate for environmental sustainability.
Significance:
- Attaining a USD 30 trillion economy with a per-capita income ranging from USD 18,000 to USD 20,000, coupled with robust public finances and a thriving financial sector.
- Revolutionizing infrastructure in both rural and urban areas, striving for world-class standards.
- Nurturing and strengthening key industries through mergers and restructuring to create 3-4 global industry leaders.
- Achieving self-reliance in the defence and space sectors, while enhancing India’s global influence.
- Collaborating with foreign R&D organizations to establish top-tier laboratories within India and elevate at least 10 Indian institutions into the global top 100 rankings.
The Present Condition and Future Outlook of the Indian Economy
- India presently ranks as the fifth-largest economy in nominal terms and the third-largest in terms of Purchasing Power Parity (PPP).
- As of 2022, India’s GDP had already surpassed that of the UK and France.
- Multiple forecasts indicate that India’s GDP is on track to surpass Japan and Germany by 2030.
- Rating agency S&P predicts India’s nominal GDP will surge from USD 3.4 trillion in 2022 to USD 7.3 trillion by 2030. Such rapid economic growth would position India as the second-largest economy in the Asia-Pacific region.
- Preliminary forecasts from NITI Aayog indicate that India’s exports will be valued at USD 8.67 trillion in 2047, with imports valued at USD 12.12 trillion.
- Moreover, India’s average life expectancy is projected to increase from 67.2 in 2021 to 71.8, and the literacy rate is expected to rise from 77.8% in 2021 to 89.8%.
Obstacles on the Path to India’s $30 Trillion Economy Vision
- Risk of getting stuck in the middle-income trap
- Concerns arise that during its journey toward becoming a developed economy, India might become ensnared in the Middle-Income Trap, slowing down after reaching a per capita income of $5,000 to $6,000.
- An aging population
- India’s present population stands at approximately 1.4 billion and is expected to reach its peak at 1.64 billion in 2048, subsequently declining to 1.45 billion by the year 2100.
- Need for higher and sustained economic growth
- While the Indian economy is experiencing robust growth at 8%, this growth rate might not be sufficient to reach the desired goal; India needs to achieve an even higher and sustainable growth rate.
- Complex geopolitics
- India confronts a multifaceted and ever-evolving geopolitical landscape, characterized by increasing tensions with China, Pakistan, and neighbouring countries, as well as shifting relationships with major powers such as the US and Russia.
- Underdeveloped agriculture and manufacturing sectors
- Enhancing agricultural productivity and competitiveness, despite employing over half the workforce but contributing only 17% to the GDP, and reinvigorating the stagnant manufacturing sector with a consistent 15% GDP share, all while creating employment opportunities for the growing population.
- Declining labour force participation
- India’s labour force participation rate (LFPR) was 40.4% in 2022-2023, considerably below the global average of 61.4%. Furthermore, India has experienced a declining LFPR over the years, particularly among women.
Way forward
To achieve its vision of becoming a USD 30 trillion economy, India should prioritize greater divestitures of inefficient public sector enterprises, reduce taxes for the middle class, improve labour force participation through education and skill development initiatives, accelerate infrastructure development, harness its manufacturing potential, boost private investment through incentives and reforms, and increase capital accumulation with substantial support for infrastructure projects and manufacturing.
| UPSC Previous Year Questions Mains (2020) Q. Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? |
Source: TH
Frequently Asked Questions (FAQs)
1. FAQ: What is the Vision India@2047 Plan, and how does it relate to strategic planning?
Answer: The Vision India@2047 Plan is a comprehensive long-term development strategy for India. It relates to strategic planning by setting clear goals, priorities, and a roadmap for the country’s growth and development, highlighting the importance of strategic planning in shaping India’s future.
2. FAQ: What are the key benefits of strategic planning within the Vision India@2047 Plan?
Answer: Strategic planning within the Vision India@2047 Plan offers benefits such as providing a clear direction for the nation’s development, facilitating efficient resource allocation, promoting innovation, and ensuring a well-organized approach to achieving long-term objectives.
3. FAQ: How does strategic planning in the Vision India@2047 Plan contribute to efficient resource allocation?
Answer: Strategic planning allocates resources based on priorities and identified needs, which helps avoid wastage and optimizes the use of limited resources to maximize their impact on critical development initiatives.
4. FAQ: Can strategic planning in the Vision India@2047 Plan support innovation and adaptability in the face of changing circumstances?
Answer: Yes, strategic planning encourages adaptability and innovation by allowing for periodic reviews and adjustments in response to changing circumstances. This ensures that the plan remains relevant and responsive to evolving needs and challenges.
5. FAQ: How does strategic planning in the Vision India@2047 Plan promote alignment among various stakeholders in the nation’s development?
Answer: Strategic planning fosters alignment by creating a shared vision and clear objectives, which unites government agencies, businesses, civil society, and the public toward a common purpose. This alignment is crucial for coordinated efforts in achieving the plan’s goals.
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