India needs to grow at 8 per cent for up to two decades to become a developed nation by 2047, the Economic Survey said on Friday, pitching for a slew of reforms, including those related to land and labour, to achieve the ambitious target.
It further stated that to achieve this growth, the investment rate must rise to 35 per cent of GDP, up from the current 31 per cent, alongside further development of the manufacturing sector and investment in emerging technologies such as AI, robotics, and biotechnology.
India will also need to create 78.5 lakh new non-farm jobs annually until 2030-32, achieve 100 per cent literacy, enhance the quality of educational institutions, and develop high-quality, future-ready infrastructure at scale and speed.
“…the faster economic growth that India needs is only possible if the union and state governments continue to implement reforms that allow small and medium enterprises to operate efficiently and compete cost-effectively… The focus of reforms and economic policy must now be on systematic deregulation,” the Economic Survey 2024-25 stated.
The survey also emphasised that regulations should be minimised, as small and medium enterprises have limited managerial and other resources at their disposal.
The key areas requiring systematic reforms include land, labour, construction, utilities, and public service delivery.
"Ease of Doing Business (EoDB) 2.0 should be a state government-led initiative focused on addressing the root causes behind the challenges of doing business," the survey noted.
It added that where the union government sets the primary law, states also have the option to deregulate by amending subordinate regulations, and they should consider these options while identifying opportunities for deregulation.
"To realise its economic aspirations of becoming Viksit Bharat by the centenary of independence, India needs to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two," the survey concluded.
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