Former RBI Governor Raghuram Rajan’s statement has reignited the debate on India’s economic growth. Rajan remarked that India needs to work even harder to achieve a sustained growth rate of 8%. However, some people believe that his statement is politically motivated. On the other hand, the opposition has repeatedly raised questions about India’s goal of becoming a developed nation by 2047. It’s worth noting that according to the GDP figures for the third quarter of the fiscal year 2023-24, India’s economy grew by 8.4% during the period from October to December. Many experts view this as a positive sign for India.
Now, let’s discuss the current economic situation of India and how India can achieve the goal of becoming a developed nation by 2047.
India’s Economic Situation So Far
According to CRISIL’s India Outlook report, by 2031, India could become the world’s third-largest economy. The report also predicts that in the next seven financial years (from 2025 to 2031), India’s economy could surpass the $5 trillion mark and reach close to $7 trillion. It’s noteworthy that many countries around the world are facing economic downturns, including Japan and others besides China. However, India continues to progress steadily and is poised to become the world’s third-largest economy by 2030.
PM Modi’s Goal of Building a Developed India by 2047
It’s apparent that on the occasion of India’s 100 years of independence, the goal of the PM Modi government is to make India a developed nation by 2047. It’s worth mentioning that an interim budget was presented by the Finance Minister on February 1, 2024, where the vision of a developed India by 2024 was discussed. India is a developing country, and the vision of a developed India includes objectives like economic growth, sustainable development, ease of living, ease of doing business, infrastructure development, and social welfare. Finance Minister Nirmala Sitharaman presented the interim budget on February 1, 2024, with the goal of a developed India by 2047. Prime Minister Modi has also mentioned the goal of a developed India several times during his speeches.
What Did Raghuram Rajan Say?
In an interview, former RBI Governor Raghuram Rajan said that the biggest challenge for the new government after the elections will be to improve the education and skills of the workforce. He said that without fixing this, India will struggle to take advantage of its young population, in a country where more than half of the 1.4 billion population is under the age of 30. Raghuram Rajan further said that foreign investors are looking towards India. According to the government’s estimates, it will increase by 7 percent in the coming financial year, making India the fastest growing major economy in the world.
India’s Development Situation
The Modi government is working on various aspects to enhance the country’s development situation, and its impact can be seen to some extent. It’s apparent that in just a few years, India has established a new dimension under the Make in India initiative. Significant improvements have been made in the construction sector with the help of new government efforts and initiatives. Additionally, there is also an increase in foreign investors’ interest in India. It is noteworthy that after the COVID-19 pandemic, many foreign companies are coming forward to invest in India.
Education and Employment Situation in India
By 2030, India will have the world’s largest youth population. 40 percent of the country’s population is young people and children. They are the strength of the country, but their planning is also a challenge. In terms of education, skill development, and employment, the 10 years of the Modi government can be considered a golden age. This included everything from preparing and implementing the New National Education Policy (NEP) to strengthening the infrastructure, which was in line with young thinking and their needs. Online and digital education is also an important step in this. This also includes the Skill Development Scheme.
Skill Development Schemes
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY): The aim of the PMKVY is to prepare the youth for employment. The primary objective of PMKVY is to enable a large number of Indian youth to take industry-relevant skill training that will help them secure better livelihoods. The target is to provide skill training to over 10 million youth during the period of the scheme.
- Prime Minister’s Employment Generation Program (PMEGP): Prime Minister’s Employment Generation Program (PMEGP) is a major credit-linked subsidy scheme that aims to create micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
Modi Government has also given a lot of boost to Digital Education in the last few years. It is noteworthy that through digital education, help is being provided to such students who live in remote areas or were not able to get quality education.