New India needs a growth strategy in the context of global trends such as increased geo-economic fragmentation, a global push for self-reliance, looming climate change, the rise of technology as the biggest strategic differentiator, and limited policy space for countries across the world.
The government's focus must turn to bottom-up reform and strengthening governance so that the structural reforms of the last decade yield strong, sustainable, balanced, and inclusive growth.
Key areas of policy focus in the short to medium term include job creation and upskilling, tapping the full potential of the agriculture sector, addressing MSME bottlenecks, managing India's green transition, deftly dealing with the Chinese conundrum, deepening the corporate bond market, tackling inequality, and improving our young population's quality of health.
The growth strategy for Amrit Kaal is predicated on six key areas: boosting private investment, expanding the Mittelstand (MSMEs), recognizing the potential of agriculture as an engine of future growth, securing the financing of green transition in India, bridging the education-employment gap, and building state capacity and capability.
In the medium term, the Indian economy can grow at a rate of 7 per cent plus on a sustained basis if we build on the structural reforms undertaken over the last decade. This requires a tripartite compact between the Union Government, State Governments, and the private sector.
Published 22 July 2024, 10:55 IST
