India has set its sights on becoming a fully developed nation by the year 2047, the year the country will celebrate 100 years of independence. But how can India turn this goal into reality? According to NITI Aayog, the country’s top policy think tank, the answer lies in rapidly boosting the manufacturing sector and making major reforms in urbanisation and energy systems.
India Needs 15% Annual Growth in the Manufacturing Sector
BVR Subrahmanyam, the CEO of NITI Aayog, recently highlighted a clear roadmap for India’s development at a CII event. He said India must increase its manufacturing sector’s growth rate to at least 15% every year. Only then can this sector contribute 25% of the total GDP by 2047 — a significant jump from the current 17%.
According to projections, if India manages to reach a GDP of $30 trillion by 2047, manufacturing alone should contribute around $7.5 trillion. To achieve this, the country must lift its overall GDP growth rate from the present 6.5% to a strong and steady 7.5% annually.
More Cities, Better Infrastructure Needed
Subrahmanyam stressed that India’s urban areas must grow and evolve. Today, only about 30% of India’s population lives in cities, which is quite low compared to global standards. He said that for faster development, this number must cross 50%. For that, the country needs to build more cities and upgrade existing ones with better infrastructure and facilities.
Creating more well-connected and liveable urban spaces will help industries flourish and provide jobs. A larger urban workforce also boosts productivity and helps businesses scale faster.
Clean and Reliable Energy is Essential
The path to development must also be green. Subrahmanyam pointed out that India’s energy sources must become carbon neutral. This means using clean energy in a way that doesn’t harm the environment. Building solar parks, increasing wind energy capacity, and shifting industries to green energy can play a major role.
He explained that growing the manufacturing sector sustainably is only possible if the country has strong and clean energy supply systems.
India Must Join the Global Value Chain
Subrahmanyam acknowledged some progress India has made — for example, the country has moved from being a net importer of mobile phones to a net exporter. Defense manufacturing has also improved. But he raised concerns about India’s low participation in the global value chain.
He compared India with China, which has built a strong presence in global manufacturing over the last 30 years. China has become the go-to hub for producing goods that are used and sold worldwide. Subrahmanyam believes India should also aim to become a key player in the global value chain by collaborating with other countries to produce goods.
Equal Growth Across All States is Crucial
Another major challenge is regional imbalance. Subrahmanyam pointed out that 90% of India’s manufacturing and investment activity happens in just five or six states. He said that for India to truly develop, every state must grow together.
The focus must shift to promoting industrial development in smaller states and backward regions. This would help reduce inequality and provide new job opportunities across the country.
Source: Navbharat Times
Disclaimer: This article is based on public statements made by NITI Aayog officials. Development targets are projections and subject to change based on global and domestic factors.
