THE ESSENTIAL GROWTH SUTRAS

To move to a higher economic plane, India must fortify its human capital and harness emerging technologies to deliver all-round growth. Champion states need to be key drivers in that growth

- Amitabh Kant

About 10 years ago, India was seen as one of the ‘Fragile Five’ economies, with shaky macroeconomic fundamentals. Confidence in the economy was plummeting, and inflation spiralling. Even though the economy had been liberalised in the ’90s, a web of regulations still existed, making India one of the toughest places to do business in. Over the past decade, we have seen all this change. India is now a ‘bright spot’ in the global economy, recording 8.2 per cent growth in FY24.

However, to become an economic superpower, we must sustain this growth rate for the coming decades. Only then will our per capita incomes increase from $2,100 to $18,000+ in three decades’ time, making us a high-income country. If we do not sustain these rates, we risk being stuck in a middle-income trap. Investment rates will need to rise, along with domestic savings. Being a function of income, domestic income and savings will only rise with broad-based employment growth.

Improving social outcomes to harness demographic dividend: India, with its demographic dividend and burgeoning workforce with an average age of 29 years, is home to one of the world’s youngest workforce. However, we must improve our social outcomes to realise this dividend. Improving learning outcomes, especially at foundational levels, is critical. Improving employability of graduates from technical and vocational education is another crucial step. Aligning curricula with industry needs, along with well-designed internship and apprenticeship programmes, can help improve employability. Building on Ayushman Bharat, we must now target the ‘missing middle’ in India’s health insurance. Primary healthcare must be strengthened to improve health outcomes. All these efforts, in turn, will hinge critically on nutrition.