Growth-led Self –Reliance, But Inclusion Still A Challenge
In the vast tapestry of nations, India's journey toward self-reliance stands out, marked by its vibrant diversity and intricate complexity. Beyond the celebratory fervour of Independence Day, the nation must both celebrate and embrace self-reliance and self-sufficiency across several platforms.
India is at the crossroads where the pursuit of self-reliance takes on a more profound dimension. The transition from symbolism to substance reflects a crucial juncture. The fine balance of growth and inclusion could redefine India's trajectory.
*Foundations of Progress: Growth, Demography, and a Thriving Democracy
India's self-reliance and rapid growth is pivoted on the large consuming class, a diversified economy, and an enabling and robust demography.
One cannot overlook the strategic significance of India's diversified economy nurtured by the consuming class. It is an asset that buffers it against the shocks that might otherwise disrupt specific sectors. It stands as a bulwark of self-sufficiency, offering a buffer against external vagaries too.
The ever-growing league of consumers power domestic industries toward high growth, and ‘shield’ the economy from global economic vagaries. It triggers investment and acts as a magnet to attract global capital. The presence of a skilled workforce across sectors bolsters self-sufficiency.
*Demography Supports India’s Vision to ‘Serve’ the Globe
Peering into India's journey toward self-reliance, the visage of industrial growth looms large. Ingeniously designed policies, particularly of the last 10 years have systematically chipped away at the nation's reliance on imported essentials, simultaneously fostering indigenous industries and creating a fertile ground for several unicorns. It is a testament to India's talent that has swiftly embraced novel technologies, fashioning homegrown solutions. This prowess has vaulted India onto the global stage as a thriving IT and software services hub. Demography supports India’s vision to ‘serve’ the globe, and a significant export driver, raking in foreign exchange and generating jobs. Similarly, investment across the Tech value chain has transformed the landscape and attracted a new breed of tech-preneurs. India has the potential to emerge as the knowledge capital of the eastern hemisphere if it is able to enhance educational outcomes.
The symphony of self-reliance echoes in the much-neglected agricultural sector too, ensuring food security for a burgeoning population, equally providing livelihood opportunities to a third of the population. However, the sector is under stress and needs revival.
Among the buttresses of India's march toward self-reliance, political stability and a robust infrastructure occupy the forefront. A steady political climate encourages and nurtures growth; attracts investments. India's strides, particularly of the last 10 years in infrastructure development has enhanced productivity, catalysed efficiency, and powered competitiveness. This is a long-term story, and we are at the beginning of the curve.
Our self-reliance is also reflected in our ability to influence the global narrative. The 30 million diaspora are India’s global ‘ambassadors’, and an integral part of India's ‘soft’ diplomacy. They are a vital bridge to access knowledge, expertise, resources, and markets for India.
*Path to Prosperity is Strewn with Obstacles
Despite the trailblazing journey towards self-reliance, India grapples with persistent barriers. Poverty's scourge, the spectre of unemployment, access to inexpensive and quality healthcare, and higher education remain formidable barricades. Achieving holistic self-reliance demands long-haul dedication across several domains.
India’s growth is limited only by the vision of policymakers. The evolving canvas presents challenges. The practice of trading 'gratitude for votes,' entailing promises of freebies and non-merit subsidies, have become increasingly prevalent and dangerously close to the precipice of undermining democracy. Unfortunately, they are gaining significant traction. This trend misallocates resources, disenfranchises the intended beneficiaries, and strays from ethical moorings. The freebie culture raises economic concerns and challenges fiscal stability.
Self-reliance demands continuous investment in critical and societal levers like health, education, and inclusivity. It is not beyond us to create and implement a robust framework that enables and nurtures micro, small, and medium-sized enterprises. Their revival is pivotal to employment. Similarly, India's demographic advantage must be harnessed by investing in education and skill. Rationalising GST rates can further expedite growth, while infrastructure and rural development serve as long-term growth multipliers.
The next chapter of reforms should script a saga of agrarian metamorphosis, ushering in radical and holistic reforms that secure the future of the farming community. The agri reforms must provide for the farmers and also go beyond. They should focus on rural development. Similarly, India needs to weave in a safety net for the much-ignored urban poor. Labour reforms is core to growth and employment and needs a holistic framework. Similarly, formalising the economy must be accelerated. Though skewed against the MSMEs, it yields results across multiple dimensions in the long run. Infrastructure has linked the country, particularly rural and urban India. Yet, it is still a ‘work in process’.
*Trajectory Next: Navigating the Growth-Equity Conundrum
As India stands at the brink of transformation, the clarion call for bolder reforms reverberates.
Economic reforms have consistently sparked initial growth spurts. The key determinant of sustained progress lies in the ability of policymakers to accelerate and uphold these reforms.
The focal point of a society must be to strike a symphonic balance between economic growth, societal inclusivity, and ecological sustainability. We are a decade away from this goal. Prioritising access to economic dignity for the marginalised and prosperity for the majority must not be just a policy but a moral imperative. The third largest economy (in purchasing power parity) must find the means and dig up the resources to create a platform for universal health and quality education.
*Unfurling the Flag of Shared Prosperity
The Prime Minister has the political capital to bring in those radical reforms. Similarly his government has the administrative capacity to ensure economic vibrancy that harmonises with universal prosperity.
India must commemorate its hundred years of independence as not only a developed economy but also as a nation with a thriving populace, characterised by prosperity and well-being.
The author is an economist and columnist
