Why in the News?

India’s 78th Independence Day is a time to reflect on our significant successes and setbacks. We should learn from both to make quicker progress towards the Prime Minister’s vision of a Viksit Bharat@2047 by 2047.

Key Aspects of Viksit Bharat@2047

• Economic Growth: The vision aims to elevate India to the status of the world’s third-largest economy and strive for a $30 trillion economy by 2047.
• Environmental Sustainability: Viksit Bharat aims to preserve biodiversity and mitigate climate change impacts through restoration and conservation efforts.
• Social Progress: The initiative seeks to build an inclusive society that respects cultural diversity and ensures the dignity and well-being of all citizens.
• Good Governance: Effective governance is a cornerstone of the Viksit Bharat vision, focusing on accountability, transparency, and sound policies that are responsive to the needs of the people.
• Youth Engagement: Recognizing the potential of India’s youth, the government has launched initiatives like the “Voice of Youth” portal to encourage young people to contribute ideas for achieving the goals of Viksit Bharat.

Economic Challenges

• Weak Domestic Demand: Stagnant or declining demand for goods and services due to low-income growth, high inflation, unemployment, and the impact of the Covid-19 pandemic.
• High Unemployment: Despite rapid growth, unemployment remains a serious issue, worsened by the pandemic. The unemployment rate in India rose to 8.1 per cent in April 2024 from 7.4 per cent in March 2024, according to CMIE’s Consumer Pyramids Household Survey. 
• Poor Infrastructure: India lacks adequate infrastructure like roads, railways, ports, power, water and sanitation, hampering economic development. The infrastructure gap is estimated at around $1.5 trillion.
• Balance of Payments Deterioration: India runs a persistent current account deficit, with imports exceeding exports. Exports and imports decreased by 6.59% and 3.63% respectively in 2022.
• High Private Debt Levels: India has witnessed a significant rise in debt levels in recent years.
  • According to the Reserve Bank of India (RBI), the total non-financial sector debt reached 167% of GDP in March 2020, up from 151% in March 2016. 
  • Household debt in India rose to 40.10% of GDP in the fourth quarter of 2023, up from 39% in the previous quarter. 

Military Challenges

• Securing Borders: Despite conflicts with Pakistan and China, India has reasonably managed border security. However, the rapid rise of China poses economic and military challenges.
• China’s Growing Influence: Almost all of India’s neighbours are moving closer to China, necessitating better policy and diplomacy to secure India’s interests and ensure regional stability.
• Military Modernization and Resource Allocation: India’s dependence on foreign arms imports, despite efforts to promote self-reliance through initiatives like “Make in India,” highlights the need for a robust domestic defense industry.
  • The country has been the largest arms importer from 2018 to 2022, indicating ongoing challenges in achieving military self-sufficiency

Suggestive measures: (Way forward)

• Agricultural Reforms: Investment in agricultural research and development, irrigation, and land-lease markets is vital. Building value chains for perishables can enhance food security and adapt to climate challenges.
• Nutritional Security: Transitioning from mere food security to nutritional security is crucial, addressing issues like child malnutrition, which affects 35% of children under five.
• Support for Farmers: Implementing subsidies for pulses and other sustainable crops can encourage healthier diets and environmental benefits. The government should provide financial incentives to farmers to shift from water-intensive crops to pulses.
• Infrastructure Development: Continued investment in infrastructure, including transportation and digital connectivity, is essential for economic growth and improving citizens’ quality of life.
• Education and Skill Development: Reforms in education to prioritize skill development and innovation are necessary to prepare the workforce for emerging industries and ensure inclusive growth.
• Healthcare Initiatives: Expanding access to affordable healthcare services nationwide is critical for enhancing public health and productivity.

Mains PYQ:

Q Foreign Direct Investment (FDI) in the defence sector is now set to be liberalized: What influence this is expected to have on Indian defence and economy in the short and long run? (UPSC IAS/2016)

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