At present India is on a turning point in its economic development. In the path of becoming a ‘Viksit Bharat’ by 2047, the country is not only gunning to achieve higher GDP but is trying to make itself a developed, self-reliant and innovation-driven global powerhouse.
But the question is not whether India has the potential. What really matters is that whether India can translate its potentials into action.
I believe that India can indeed become a Viksit Bharat if we focus on building up manufacturing, strengthening the private sector, support small businesses and build an environment that encourages innovation, rather than stifles it..
The Manufacturing Gap India Must Address
The relatively low share of manufacturing in the Indian economy has been one of the greatest reasons for India not being able to sustain double-digit economic growth. India’s manufacturing sector accounts for almost 15-17 percent of the GDP, while China achieved a high growth rate during the period when manufacturing’s contribution to GDP was above 25-30 percent.
This difference is extremely important.
Manufacturing generates jobs on a large scale, exports, boosts productivity and improves domestic value added chains. A robust manufacturing system also helps to lessen reliance on imports and enhance the economic resiliency to global shocks.
India has already done a lot to boost manufacturing through “Make in India” and Production Linked Incentive (PLI) schemes. These policies are driving investments in these segments including electric vehicles, renewable energy, defence manufacturing, electronics and semiconductors.
In order to successfully transform itself into a manufacturing-based economy, however, India needs to set up the environment conducive to the manufacturing sector in a way that is stimulating manufacturing companies and industrialists to invest heavily in expansion and innovation.
Balancing Agricultural Support with Industrial Growth
Agriculture continues to be the mainstay of rural livelihoods and farmers need to be supported. The farming community has been supported by subsidies and policy in the past. But there’s also a bigger economic discussion to consider.
Indirect costs to industries, taxpayers and productive sectors of the economy are placed on the economy as costs of subsidies and costs of policies. When the pressure on industrial capital is too high, it can decrease a company’s ability to make new capital investment (capex), open new factories, create jobs and expand production size. This needs to be done in a balanced way.
India is not faced with the choice of either farmers or the industrialists. Rather, the nation should have a system in place that will make farming more productive and efficient, and give industries enough policy stability and monetary flexibility to grow manufacturing capacity. The overall development of the industrial base is good for the overall economy, particularly for rural India, because it creates jobs, raises incomes and enhances demand.
Why Logistics and Transportation Will Decide India’s Future
Another major challenge India faces is logistics cost.
In the developed world, waterways and waterborne freight transport are very important, due to the low cost of waterborne transport compared to road transport. Efficient inland water transport and port-based logistics boost export competitiveness, cut transportation costs, and enhance industrial supply chains in countries with efficient inland water transport and port-based logistics systems.
Road transport continues to be the most important mode of transportation for goods in India. Though highway and expressway construction is making rapid strides, the efficiency of logistics can be improved significantly if India invests in the development of advanced water transportation infrastructure and new transportation technology in the future..
This transformation will not happen overnight.
It requires:
- Long-term infrastructure planning
- Technological innovation
- Private sector participation
- Policy consistency
- Research-driven solutions
India needs new ideas, new interventions, and future-oriented thinking to solve these structural challenges.
The Importance of Supporting Small Manufacturers and Private Players
A country could not prosper as a developed country on the basis of the activities of a few big companies.
Developed economies are truly powerhouses of their small manufacturers, local entrepreneurs, micro, small and medium enterprises, startups and private innovators. They provide jobs at the grassroots level and many also develop into future industrial powerhouses. Indian entrepreneurs are beyond imagination! It’s not that small businesses lack the ability, it’s that they don’t have the support.
We need to inspire people to do the following as a society:
- Young entrepreneurs
- Small manufacturers
- Technology-driven startups
- Local innovators
- Private sector risk-taking
The Indian industry can make any of the world-class product with very competitive rates. How to make that happen, however, requires capital, technology, infrastructure and market opportunities for domestic manufacturers.
What they really need most is a chance for social support and trust.
Technology and the Power of the Next Generation
Technology has been a catalyst for every major economic revolution of history. A Viksit Bharat is not possible with just the traditional approaches and systems. Technology needs to be a part of all sectors:
- Manufacturing
- Agriculture
- Logistics
- Healthcare
- Education
- Financial services
- Infrastructure
The younger generation will play the biggest role in this transition.
India requires new and fresh minds to introduce new techniques, new ideas and scalable innovations. The nation needs to establish an environment where youth are free to experiment, establish companies, develop an intellectual property and address issues of the country.
In our world, however, there are many creative people who are put off by their own friends and family from trying something new.
This brings to mind a lesson from the Mahabharata. Abhimanyu thought that his own people will support and protect him.
When support systems crumbled around him, however, the battle got tough. Likewise, a lot of young entrepreneurs and innovators in the world today face challenging battles and join with hope and dream but find very few supports and resistances. In order to become a developed country, Indians should be supportive of their new generation instead of suppressing their thoughts about it. Failure is not the norm, but a sign of the road ahead—we need to learn to take risks, not fear them.
A nation progresses when its youth feels empowered to build.
The Road to Viksit Bharat
India’s journey toward becoming a Viksit Bharat will not be easy. There will be challenges:
- Global competition
- Technological disruptions
- Geopolitical uncertainty
- Employment pressures
- Resource constraints
But India possesses unique advantages:
- A massive young population
- Strong digital infrastructure
- Rising entrepreneurial culture
- Expanding domestic consumption
- Improving policy reforms
- Growing global relevance
The foundation is already being built.
Now it’s time to put the next step into action, innovating, growing manufacturing, upgrading the infrastructure, and gaining national consensus and support on creators, entrepreneurs and industries.
India can do much better than most countries and is sometimes able to do it at lower costs. But for this to be realised, it is important that we all have faith in Indian manufacturing, Indian innovation and Indian enterprise.
The objective of ‘Viksit Bharat’ cannot be accomplished by government policies alone. When government, industries, entrepreneurs, innovators and citizens are all going in the same direction, with a long-term view and a strong sense of national confidence, it will be done.
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