Hindu Editorial Analysis : 22-August-2024
India has always dreamed big about its economy. As we look toward the future, a crucial question arises: Can India achieve the ambitious goal of becoming a $30 trillion economy by 2047? This goal is part of a larger vision, known as Viksit Bharat, outlined by NITI Aayog.
Vision 2047: Viksit Bharat
According to NITI Aayog, India’s Gross Domestic Product (GDP) could reach $30 trillion by 2047. This target requires India to grow at an average annual rate of over 9%. However, the current Budget for 2024-25 estimates a more modest growth rate of 6.5-7%.
Why Aim for $30 Trillion?
- Economic Growth: A larger economy will help create more jobs. Recent efforts focus on making it easier to do business, implementing production-linked incentive (PLI) schemes, and investing heavily in infrastructure.
- Per Capita Income: The vision includes raising per capita income to $18,000, which means more money in the hands of citizens.
- Participative Governance: The plan encourages all citizens to be involved in shaping the country’s future, not just government officials.
- Quality of Life: Beyond numbers, the aim is to improve healthcare, education, and overall living conditions for every Indian.
Immediate Challenges
India faces several immediate challenges on its way to achieving this goal:
- Agriculture: Improving agricultural productivity is essential. Sustainable practices and technological advancements can significantly help this sector.
- Employment and Skills: There is a significant skill gap; about 50% of graduates are not employable. Bridging the gap between education and industry needs is crucial.
- Social Justice: Reducing inequality and ensuring access to quality education and healthcare are vital for a just society.
- Manufacturing and Services: A strong manufacturing sector, alongside a robust services industry, is necessary for continuous growth.
- Urban Development: As more people move to cities, efficient urban planning and infrastructure are critical for economic progress.
Medium-to-Long-Term Goals
The Budget highlights nine priority areas:
- Agriculture Resilience
- Employment and Skills
- Inclusive Human Development
- Manufacturing and Services
- Urban Development
- Energy Security
- Infrastructure Development
- Innovation and R&D
- Next-Generation Reforms
These areas aim to address both immediate and long-term needs, ensuring a balanced approach toward economic growth.
Role of the Middle Class and Investors
The middle class stands to gain from tax reforms and other budget provisions, while investors benefit from policies that encourage investment, such as tax reductions.
Way Forward: The Union Budget’s Role
The Union Budget focuses on key areas like employment, skilling, and support for Micro, Small, and Medium Enterprises (MSMEs). Its main messages include:
- Reducing Inequality: Addressing the wealth gap is a priority.
- Increasing Employment: Initiatives for skilling job-seekers will help reduce unemployment.
- Support for MSMEs: These enterprises are crucial for job creation.
- Private Sector Involvement: While government infrastructure projects will generate jobs, quality employment in the private sector is necessary.
Why In News
India’s economic aspirations have always been grand, and rightly so. With a rapidly growing population and a young workforce, the potential for growth is immense. As we look ahead to the next few decades, the question arises: Can India achieve the remarkable milestone of becoming a $30 trillion economy by 2047?
MCQs about India’s Path to a $30 Trillion Economy by 2047
- What is the target GDP that India aims to achieve by 2047?
A. $20 trillion
B. $25 trillion
C. $30 trillion
D. $35 trillion
- Which of the following is NOT one of the nine priority areas mentioned in the Budget Speech for achieving economic growth?
A. Energy Security
B. Urban Development
C. Space Exploration
D. Innovation and R&D
- What is a significant challenge India faces in relation to its workforce?
A. Overpopulation
B. Lack of natural resources
C. High employment rate
D. Skill gap among graduates
- What role does the Union Budget play in India’s goal to become a $30 trillion economy?
A. It focuses solely on reducing taxes.
B. It addresses immediate needs while setting long-term economic goals.
C. It eliminates all government spending.
D. It primarily targets large corporations for support.
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