Within days of Prime Minister Narendra Modi exhorting fellow countrymen to take five pledges (“Panch Pran”) on 76thIndependence Day on Aug 15, 2022, where the first pledge was to make India a developed country by 2047, India overtook UK as the fifth-largest economy in the world, on September 3.
India is now poised to be the third-largest economy by 2030. It is being said that India will be “amongst top two economies” in 2047. It is also being said that we will be “a $ 30 billion economy in the next thirty years”.
The “Panch Pran” highlight of PM Modi’s Independence Day speech this year also talked about “liberating ourselves from a colonial mindset,” “having a sense of pride about our civilizational heritage”, “unity and harmony” and our “duty”.
It was in his 75thIndependence-Day speech that PM Modi first talked about “Amrit Kaal” and India@2047. Since then, multiple government programmes have been conceptualized keeping in mind their long-term implications.
The goal to make India a developed country in the next 25 years now defines a clear roadmap and an ambitious target to be achieved.
Can the “Panch Pran” be further energized if an enabling environment is created, keeping in mind the economic and policy challenges ahead?
Consider this; The “Amrit Kaal” period of the next 25 years is also the period when India is blessed with what is commonly referred to as “demographic dividend”.
Broadly speaking, for the next two decades, the working-age population in India will increase. Today, India has a higher proportion of working-age population, when compared to, say, rival China. India overtakes China as the most populous country next year. India’s working population, if gainfully employed, however, gives it an edge, when it comes to making India an economic powerhouse.
After two decades from now, the proportion of “dependents” in India will rise, and according to an estimate, the population of those above 75 years will cross the 10 crore mark then.
An NCAER survey of 2018 that captured this phenomenon summed it up aptly. It said: “India must get rich before it gets old”.
Indeed, for India to benefit from its demographic dividend, it is imperative that the youth who enter the workforce every year are skilled. Better still, they should be trained to become “job creators”.
The reality however is different. Reports say that eight out of 10 engineers in India are not “employable”. Compare this with the level of skilling in the US (at over 50 per cent) or Germany (over 75 per cent) or Korea (over 95 per cent).
The Narendra Modi government has taken measures to boost skilling and entrepreneurship. Skilling is part of the new National Education Policy. The mission to skill India has got an impetus. But many also argue that there are multiple stakeholders – including Central Ministries, State Governments, education boards and universities – involved in the mission to skill India, even if there is a nodal ministry. Experts suggest a “Gati Shakti” type intervention for the skilling ecosystem.
Skilling, however, is only one part of the story. Governments and political parties may promise voters “lakhs of jobs,” but the fact is that such promises are rarely fulfilled. Partly because it has increasingly been internalized by one and all that governments have no business to be in business.
A focus area of the National Education Policy – towards creation of “job creators,” and not merely “job-seekers”-- needs to be then pushed vigorously.
The success of the Start-up revolution in the last eight years has many lessons for everyone. With over 75,000 start-ups and over 100 unicorns, and with the objective to create 1,000 unicorns by 2030, the Start-up revolution has also led to a healthy competition between States. Many cities and states claim and aspire to be India’s “Start-up capital”.
The distance that we have travelled can be gauged from this: It was the Mumbai-Pune cluster that emerged as one of the earliest hubs of ICT start-ups. Today, however, even states like Meghalaya figure in top lists when it comes to ranking of states on support to the Start-up ecosystem. Forty nine per cent of Start-ups are in Tier 2, Tier 3 centres.
The first resolvetowards creating an enabling environment for “Panch Pran,” thus, could be to ensure that India benefits to the fullest from its demographic dividend. Skilling and promoting a culture of entrepreneurship are the two ways which can be employed towards this objective. Every state which takes initiatives towards skilling and entrepreneurship, whether in classrooms and outside, should be encouraged.
One of the pledges in “Panch Pran” is about unity and harmony. This also means that the states and the Centre should speak in one voice as often as possible. The spirit of cooperative and competitive federalism is important. There are often, however, unresolved issues between the Centre and states, and then there are also inter-state disputes.
Debates, at times acrimonious, follow with states seeking more autonomy following judgments like one by the Supreme Court on GST council. In debates like the one raging on “welfarism / empowerment”vs“freebies” many states want a renewed push for “fiscal federalism” and “decentralization”.
In the period leading to India@2047, one issue that will test India’s collective wisdom and resilience is Delimitation.
It is often argued that the Southern states have performed better than their northern counterparts, when it comes to population control. However, they also fear that this could be used to “reduce” their representation in Lok Sabha and Rajya Sabha when the Delimitation exercise is undertaken, post-2031.
It would only be proper, then, if the political leadership, maybe along with the northern states, evolve a consensus and assuage the Southern states that the Delimitation exercise would be absolutely fair and just.
With Lok Sabha elections less than two years away, and many states assembly elections in the intervening period, political slugfests and trading of charges will only increase. Opposition parties say that the government uses State agencies to target them. Government spokespersons say that law is taking its own course.
Given this backdrop, whenever states and Centre meet and talk, it would always be watched with a lot of interest. In last month’s Niti Aayog Governing Council meeting, an Opposition Chief Minister said that the Prime Minister lauded one of their schemes on “Godhan Nyay Yojna”. Another Opposition Chief Minister said that his State would like to host official meetings when India assumes the G 20 presidency in December. All instances of cooperation, coordination, and measures that enhance mutual trust, should be encouraged.
One issue that may be debated by states and Centre alike is that a nativist tendency seems to sweep one and all. In an India which promotes “Ek Bharat, Shreshtha Bharat,” free flow of ideas, people, goods and services should be encouraged. Fact is that none out of ten Indians spend their lives in districts they are born in.
The national Covid vaccination drive was a huge success and also an example for the rest of the world because the States, Centre, healthcare leaders and personnel, and the political leadership rallied together.
There is another area of divergence. National Education Policy, including the thrust on mother tongue for initial school, has been lauded by all. But a debate rages if English should be shunned, with many non-BJP states promoting English-medium schools.
The second resolvetowards “Panch Pran”, thus, would be to keep contentious issues, including inter-state disputes, on the backburner and focus, unitedly, towards common goals, including making India a developed nation by 20147.
While the story of Services is pretty well known, Manufacturing, Agriculture, Education and Healthcare have seen some interesting trends in the last few years.
After many false starts, the Manufacturing sector is showing signs of progress. It now contributes to 17 per cent of GDP. Schemes like PLI have delivered. In its quest towards “Aatmanirbhar Bharat”, Manufacturing will have a key role.
Author Ruchir Sharma recently observed: “State-owned companies accounted for 25 per cent of the Indian stock market a decade ago, but that has fallen to 7 per cent and not due to State-led privatization”.
Industrialist-author Naushad Forbes writes in his book “The Struggle and the Promise,” “… A country that leads the world has to be driven by its private sector. It is not that the government does not matter or doesn’t have a key role to play, but it is the private sector that must playthekey role in national development”.
Is there a case then for India Inc. to lead the manufacturing revolution and power “Aatmanirbhar Bharat”?
When it comes to Agriculture, the average land-holding size is just about one hectare, and the cycle of cereals is not enough to make our farmers prosperous. Clearly, there is a case for diversification.
In Healthcare and Education, the government has proposed a medical college in every district. The ongoing “Har Ghar Jal” programme, arguably, is one of the path-breaking initiatives today, with the scheme having already covered 52 per cent of rural households and 84 per cent of government schools already.
In terms of human development indices, the sex ratio at birth has improved when it comes to number of females per 100 males (the latest figures in India say that there are 108 males per 100 females). There are more girls in colleges than boys, with more than one third of them pursuing Sciences.
The third resolvetowards “Panch Pran” then is to make every individual effort and private collective effort count. The government alone cannot be expected to accomplish everything. It has to be “Sabka Prayas.”
Talking about “Sabka Prayas,” it also means debates, deliberations, dialogues and consultations. It also means roping in some of the finest minds and talents from the private sector.
Says Forbes in his book: “..When democracies progress, they do so because millions of animal spirits are liberated, not just the spirit of one state animal…”
Industrialist-columnist Gaurav Dalmia takes the argument further. Dalmia quotes a 2012 study that “although the (Indian) diaspora is equal in number to just 2 per cent of India’s population, its total wealth was approximately equivalent to half of India’s GDP. He then says: “The message is clear: Give Indians with initiative the right economic environment and they will thrive”.
Investor-columnist T V Mohandas Pai recently came up with an interesting idea. He called for the inclusion of Sridhar Vembu, who is a trendsetter in setting up his enterprise in rural Tamil Nadu, and also attracting rural talent, in the decision-making process. “” I will strongly suggest that Sridhar Vembu be appointed a Cabinet Minister or a Minister of State under Prime Minister Modi, and be given the responsibility of rural industry. We have to create jobs in rural areas to ensure that people get high-quality jobs in places where they stay.”
The fourth resolve towards “Panch Pran” then could be to look for out-of-the-box ideas and ideas for innovation everywhere and encourage the process of public consultations for policymaking.
Among PM Modi’s “Panch Pran,” there is one on unity, harmony, bonhomie. This is important.
Every attempt to create wedges, fissures and disturbances should be dealt with sternly. Radicalism should be weeded out. Anti-national activities should be dealt with an iron fist.
There is a small section, however, which also fancies the idea of “Hindu-first”. Such ideas should be met with an “India-first” response. They must be told that whether it is Hindu or Muslim, or anyone else legally staying here, is a proud and equal, stakeholder in India’s glorious future. Indeed, “Sabka Saath, Sabka Vikas” has to be the mantra.
Strife or conflict has an economic cost, too. Seen from another perspective, it is useful to see how Dalit capitalism breaks hierarchies and divisions. Market dynamics creates its own web of interdependence. It is important therefore that the business and economic ecosystem and the value chain is diverse and inclusive.
The fifth resolve towards “Panch Pran” would be to shut the door on any form of divisiveness or ideas that promote strife and conflicts.
In his I-Day address, PM Modi invoked the slogan “Jai Jawan, Jai Kisan, Jai Vigyan, Jai Anusandhan”.
Would it be proper to add “Jai Utthan” to this slogan? “Utthan” is all about progress and prosperity. In India’s march towards prosperity, and in its quest to become a developed nation, the private sector, India Inc, and individual efforts will play an important role.
PM Modi’s “Panch Pran” resolutions show the way. The Five Pledges above here will further help India unleash its potential towards becoming a developed, prosperous nation by 2047.