The central theme of PM Narendra Modi’s 11th independence day speech was achieving a Viksit Bharat or developed India by 2047. To do so, he stressed that reforms were necessary at every level of the governance structure; he exhorted states and local governments, including panchayats and municipalities, to initiate at least two reforms a year directly benefiting common man. As against expectations that a coalition government may weaken the BJP’s resolve for reforms, he assured citizens of his commitment to taking big steps not limited to ink on paper or a few days of applause, but driven by an intention to strengthen the nation.
There are no precise definitions of what constitutes a developed nation, but one metric that is often used is gross per capita income. India, with a per capita income of $2,392 a year, is currently classified by the World Bank as a lower-middle income economy. To emerge as a high-income economy, the per capita income should exceed $14,005. The government’s policy think-tank Niti Aayog, which recently published an approach paper, estimated that for India to emerge as a developed nation in next two decades, its per capita income should increase by about eight times. Clearly, that appears to be a long shot. Perhaps, a good place to start would be to first focus on cracking the upper-middle income bracket of $4,516-14,005.
As Modi pointed out, this is a golden era for India and its youth are central to its development. But for a country that intends to take giant leaps, there are not too many opportunities to absorb its growing workforce. As the Economic Survey 2023-24 noted, India must create over 7.85 million non-farm jobs every year until 2030. The government’s reforms push in the manufacturing sector and the employment schemes announced in the Union budget are steps in the right direction; but we need to do much more to generate jobs and arrest rising unemployment. Above all, education reforms are the cornerstones for improving skill sets and for ensuring that freshers are readily employable.
The government must also simultaneously address socio-economic challenges such as healthcare and sustainable development. That is because human development indicators are another key metric for a developed nation. So India must strive for inclusive growth, ensuring every citizen has equal access to necessities and opportunities.