Context:

• This article is based on an Editorial “Virtues of planning: On the Vision India@2047 plan” which was published in the Hindu. In early 2024, the Indian Prime Minister is expected to unveil Vision India@2047 document to transform India into a developed nation with a $30 trillion economy by 2047. 

What is the Vision India@2047 Document?

• Formulation: The strategy for achieving the objective was started in December 2021 and is being prepared by NITI Aayog. 
• Adaptability: This document will outline the necessary changes and reforms to achieve the goal. 
• Inclusion: Secretaries across sectors such as rural & agriculture, infrastructure, resources, social vision, welfare, finance and economy, commerce and industry, technology, governance, security and foreign affairs.                                                                          
• India Vision 2047 Will Focus On: 
  • India Vision 2047  will cover government process re-engineering, global engagement, implementation roadmaps, and measures to avoid the middle-income trap. 
  • The document will also include plans for creating global leaders, addressing regional disparities, and developing human capital. 

• Timeframe: The Vision 2047 document has action points and outcome goals into two periods — 2030, and the 17 year-period from then till 2047.
  • This is to ensure that India does not slip into a middle income trap in future. 
    • Middle-Income trap: According to the World Bank definition, the middle-income trap refers to a situation whereby a middle-income country is failing to transition to a high-income economy due to rising costs and declining competitiveness. 
• Opinions From: The NITI Aayog will soon share its central ideas and goals past top minds including World Bank President, Apple chief, as well as Indian industrialists and thought leaders, to make it more better. 

What challenges does India need to address to achieve the status of a developed nation?

• Income Inequality: High income inequality in India requires reduction efforts to ensure equitable growth and opportunities for all citizens.
• Middle Class Expansion: Expanding the middle class is essential to boost private consumption, a key driver of economic growth and GDP.
• Workforce Development: Investing in education and skills development, along with improved healthcare, can transform the population into a valuable asset.
• Infrastructure Improvement: Addressing weak infrastructure and increasing investment are critical for sustained development.
• Populist Measures: Reducing reliance on populist measures and freebies is necessary for long-term economic stability.
• Boom-Bust Cycles: Learning from global commodity market cycles, India must identify its strengths and specialize in sectors to avoid job losses and investor setbacks.

The Path Ahead

• Ensure Continuity: The Vision India @2047 plan should have some ideas to counter challenging reforms and ensure policy certainty for global investors. 
• Less Government Interference: Need for minimizing the government’s role to that of an enabler rather than a micro-manager.
• Focus on Countering Challenges: Need for hastening the long-pursued structural shift and reducing the widening trend of income inequality to counter the challenge of middle income trap.
• Evolving with Requirement: The Vision India @2047 plan must be revisited at suitable intervals to recalibrate goals based on evolving global trends and Black Swan events such as Israel-Hamas Conflict. 

Also Read: Global Maritime India Summit 2023; PM Unveil Blueprint For Maritime Blue Economy

Conclusion:

India’s rise from 1991, when it accounted for 1.1% of the global economic output, to the 3.5% and currently as the world’s fifth largest economy, has been driven by reforms and liberalization agenda. With a hopeful approach, India is aiming for a 9% growth rate between 2030 and 2047 that needs to consider the unpredictable scenarios and change course whenever required.