Vision of Viksit Bharat: A roadmap for success

Dipak Kurmi

(The writer can be reached at dipakkurmiglpltd@gmail.com.)

In just a decade, India has transformed into an economic powerhouse, surging from the 10th to the 5th spot in global GDP rankings. With a current GDP worth $3.94 trillion, India’s ascent is undeniable. Projections from Morgan Stanley paint a promising picture, suggesting that by 2027, India could claim the third spot, overtaking economic giants like Japan and Germany. If India maintains a robust 10 percent annual GDP growth, it could even surpass expectations, potentially becoming the second-largest economy by 2032 and eventually claiming the top spot by 2047–2050. While these targets are ambitious, India’s status as the world’s fastest-growing economy underscores its relentless march towards global economic dominance.

In the realm of digital payments, India stands as a global leader, commanding the top spot with an impressive 46 percent share of the world’s digital transactions. The exponential growth is evident: from a modest 162 crore transactions in the fiscal year 2012–13 to a staggering 14,762 crore transactions in 2023–24. Such a remarkable surge translates to a whopping 91-fold increase over the past decade, firmly establishing India as the epicentre of digital transactions worldwide.

Over the past decade, capital expenditure has been a focal point for the government, with a notable allocation of Rs 11.11 lakh crore earmarked for the financial year 2024–25 alone. This investment has translated into tangible progress, as evidenced by the construction of an impressive 54,000 kilometres of national highways during this period. Such strategic spending underscores the government’s commitment to infrastructure development and economic growth.

Since its implementation in July 2017, GST has been a cornerstone of India’s tax regime. Initially aiming for Rs 1 lakh crore per month, the Central Government has seen consistent growth in GST collections. April 2024 marked a significant milestone with a record-breaking collection of Rs 2.10 lakh crore, showcasing the enduring success of GST in bolstering government revenues.

India’s GDP journey is a testament to its economic prowess. From a modest $189 billion in 1980, India reached the historic milestone of $1 trillion in 2007. Subsequently, the trajectory has been impressive, with GDP projections soaring to $2.039 trillion in 2014, $3.737 trillion in 2023, and culminating at $4.011 trillion in 2024. This phenomenal growth underscores India’s position as the world’s third-largest economy by GDP (PPP), standing at a formidable $14.6 trillion. Despite being the most populous nation globally, India continues to exhibit resilience and promise, with projected annual GDP growth rates ranging between 8-11 percent. This growth isn’t limited to the macroeconomic scale; per capita income has also seen a steady rise, climbing from $271 in 1980 to $1560 in 2014, and reaching $2730 in 2024. As India marches forward, its economic ascent remains a beacon of optimism and opportunity on the global stage.

India’s foreign exchange reserves have reached an impressive $640 billion, providing a robust buffer that can cover 13–14 months of imports. This stands in stark contrast to a time when the nation’s economic outlook was dire, with foreign reserves dwindling to a mere few days’ worth of imports. Today, the tables have turned dramatically: even in the hypothetical scenario of halted exports for several months, India remains well-equipped to sustain its import requirements for over a year. This transformation underscores India’s enhanced resilience and financial stability on the global stage.

India has claimed the top spot globally in real-time digital transactions, setting a remarkable precedent with a staggering 48 billion transactions recorded in 2021, a feat unmatched elsewhere. Additionally, India leads the world as the largest producer of generic medicines, manufacturing an impressive array of 60,000 generic drugs spanning 60 categories. Furthermore, the nation stands tall as the foremost supplier of vaccines worldwide, cementing its reputation as an indispensable player in the global healthcare landscape.

Ranked as the world’s second-largest steel producer, India closely trails China in this critical industry. With an annual steel production currently standing at approximately 120 million metric tonnes, the nation’s ambitious trajectory aims to double this output to an impressive 300 million metric tonnes by the year 2030. Additionally, India holds the second position globally in mobile phone manufacturing, a testament to the success of initiatives like Make in India. Over the past decade, this programme has facilitated the production of an astounding 2 billion mobile handsets within the country’s borders, further solidifying India’s position as a key player in the global mobile industry.

The Indian pharmaceutical industry has solidified its position as the world’s third-largest, marking a significant milestone in global healthcare. Similarly, India boasts the third-largest metro rail network globally, a testament to the nation’s strides in modern infrastructure development. With a current span of 911 kilometres, this network has experienced remarkable growth from its 2014 extent of merely 248 kilometers. Projections suggest that within the next 2–3 years, India may surpass the United States to claim the second spot in metro rail infrastructure. Furthermore, India’s stock market stands as the fourth-largest worldwide, boasting a substantial market capitalization of approximately $4.8 trillion. Fueling this vibrant market are around 15.2 crore active demat accounts, indicative of the burgeoning investor interest that continues to propel the stock market to new heights.

In the fiscal year 2022–23, India’s total exports amounted to $776.40 billion, reflecting the nation’s significant presence in the global market. Projections for the following fiscal year, 2023–24, indicate a marginal increase to $776.70 billion, underscoring the consistency in India’s export performance. Looking ahead, there is optimism that India’s exports will continue to ascend, with expectations set on reaching the monumental milestone of $1 trillion by the year 2030.

The country’s adoption of inclusive, fair, and transparent economic policies has fostered a conducive business environment, paving the way for robust industrial development. Initiatives such as Make in India, Start Up India, Skill Development, One District, One Product, Mudra Scheme, PLI Scheme, and Stand Up India have injected fresh momentum into the industrial landscape. With India’s accelerating economic prosperity, it’s poised to emerge as a frontrunner among developed nations in the coming decades, solidifying its position as the world’s foremost economic powerhouse.