Vision 2047 -Making India a Developed Nation

By-

Divyansh Gupta
Sri Guru Gobind Singh College of Commerce,
Delhi University

A Research Project Submitted in

Partial Fulfilment o f the Requirements
For the Internship at NITI Aayog

Approved by: Dr. Pravin Kumar

Specialist
National Institution for Transforming India (NITI)
Aayog, Government of India

Under the Guidance of: Sh.Sanjeet Singh, IRS Senior Adviser,

National Institution for Transforming India
(NITI) Aayog, Government of India
 Acknowledgement

I would like to express my deepest gratitude and appreciation to my esteemed

mentors, Dr. Pravin Kumar, Specialist at NITI Aayog, and Sanjeet Singh IRS, Senior
Advisor, for their invaluable guidance and support throughout the course of this
research project.

Their expertise, profound knowledge, and insightful feedback have been

instrumental in shaping the direction and methodology of this study. Their
continuous encouragement and constructive criticism have inspired me to strive
for excellence and overcome challenges at every step of the research process.

I am immensely grateful to Mr. Sanjeet Singh and Dr. Pravin Kumar for generously
sharing their time, expertise, and resources. Their mentorship has enriched my
understanding of the subject matter and has contributed significantly to the quality
and depth of this research paper.

Furthermore, I would like to extend my gratitude to the entire team at NITI Aayog
for providing me with access to essential data and resources that have been pivotal
in conducting this research.

Last but not least, I would like to thank my family and friends for their unwavering
support and encouragement, which has been a constant source of motivation
throughout this academic journey.

This report would not have been possible without the guidance, support, and
encouragement of all those mentioned above. I humbly acknowledge their
contributions and express my sincere appreciation for their role in making this
study a reality.

Thank you.

signature
 How it was Introduced
In the speech marking the 75th anniversary of India's independence from British
rule, Indian Prime Minister Narendra Modi pledged to raise millions out of poverty
and turn India into a developed nation within 25 years.
At a time when the global economy is facing multiple challenges, it is commendable
that India has the courage to propose such an ambitious goal. And it would be a
boon to the world if India becomes a developed nation, lifting millions of Indians
out of poverty. Of course, to achieve the high target, India needs to show persistent
and unprecedented resolve and efforts.
To help build this future-ready India, the Vision-2047 plan suggests re-engineering
government processes to bring institutional expertise to the government sector
and eliminating unnecessary interference by the government in citizens' lives. The
Government's vision for India is ambitious, but it is also achievable.
Vision 2047- An Overview
At the brink of the 75th Year of Independence of India on 15 August 2022, the
celebration of Azadi Ka Amrit Mahotsav, our country stands at a cusp of rapid urban
transformation cradling the aspirations of its 1.4 billion citizens and therefore, it is
crucial to take a balanced view in understanding and determining our growth story
for next 25 years.
United Nations projects India’s population to be 1.64 billion by 2047, of which
nearly 0.82 billion (~50%) shall be residing in urban areas. Urbanization has always
been considered as a boon for a country’s economic development. Urban areas
constitute only about 3% of the total land area but contribute to over 70% of the
Gross Domestic Product, indicating a high level of economic productivity. In line
with rapid urbanization, Indian economy is also expected to grow from $3.1 trillion
to $20 trillion by 2047, securing its place amongst the top three largest economies
in the world by 2047, i.e., the 100th year of our Independence. In this journey of
high paced urbanization and economic development, cities shall play a pivotal role.
Our cities shall significantly increase to facilitate as economic powerhouses and
magnets for large scale rural population. It is imperative to ensure that economic
growth leads to balanced development across all regions and sectors.
While India’s unprecedented growth journey may seem to be pleasing, the melting
point is to answer ‘are we ready for the challenge to facilitate this scale of growth
and development?’ Our rural settlements are already transforming to peri-urban
areas to Tier-III and IV towns. They have begun to display characteristics similar to
those witnessed in urban areas. Whilst these centers may be flourishing with a
vibrant economy, the challenges of dilapidated infrastructure and services are
prominent.
In addition to the transformation trends of rural settlements, our mega-cities are
also witnessing growth of informal sector in form of slums and unorganized
economic activities, overcrowding, deterioration of quality of civic infrastructure,
traffic and transportation inadequacies, mismanagement of supply chains,
disconnect with heritage and culture etc. Coupled with the outbreak of COVID19
pandemic, these issues have further tested the resilience of our urban systems.
It is important to note that rapid urbanization also implies a high demand for goods
and services, along with requirement of efficient systems of urban development,
management, and governance. With plenty of room for improvement in existing
cities to facilitate citizens with basic services and infrastructure, accommodating
0.82 billion urban citizens by 2047 which will be far more challenging than
anticipated as our megacities are behind its global peers in qualitative terms.
Amrit Kaal – Plan for next 25 Years
Referring to the next 25 years upto 2047 as 'Amrit Kaal', Prime Minister Sh.
Narendra Modi had in 2021 said, “In the next 25 years, during 'Amrit Kaal, the
nation will move forward towards attaining resolutions made for Aatmanirbhar
Bharat”. Therefore, Government of India has embarked the journey to set the
course for India @ 100. The crucial journey of next 25 years has been termed as the
Amrit Kaal, with an objective to enhance the lives of citizens, reducing the urban-
rural divide and embracing technology towards infrastructural development. It is
interesting to note the Budget 2022-23 seeks to lay the footprint and give a
blueprint to drive Indian economy for Amrit Kaal. A paradigm change is envisioned
for our cities with introduction of PM Gatishakti National Master Plan, AtmaNirbhar
Bharat, National Infrastructure Pipeline and National Monetization Pipeline to
boost infrastructural and economic development.
Envisioning Urban India @ 2047 is an attempt to bring to our attention imperatives
and catalysts for development of Urban India in the next 25 years. The efforts of
sustainable urbanization and economic development are to be concerted across
pillars of Economic, Social, Technological, Environmental Development.
The focus areas for defining our aspirations identified across these pillars are as
follows:
Social: enriching ‘Soul’ of our cities by adopting principles of sustainable
development, ensuring high standards for quality of life for citizens by meeting
aspirations of livability of our cities; and fulfilling our social commitments towards
balanced and equitable development
Economy: maintaining economic vitals of our cities; identifying innovative financing
streams for infrastructure development; and sustaining infrastructure
development through excellence in program management
Environment: development of focused approach for climate resilience; and
exploring alternate mobility solutions
Technology: adopting new age technologies towards delivering citizen services and
development of infrastructure.
Rural Development
One of the primary goals of my vision for India in 2047 is to eliminate poverty and
inequality. India should focus on creating more employment opportunities,
providing better education and healthcare facilities, and ensuring equal
opportunities for men and women, irrespective of their caste, religion, or social
status. The following themes have been identified for Rural Development sectors
on which action may need to be taken-
LIST OF THEMES
(i) Social Development  Whether the present social service delivery pattern
and social security is adequate?  How should this change as India reaches
2047?  What should be the shape and architecture of social security? 
What should be the role of the panchayats and local governments and the
strategy to achieve this?
(ii) Rural Infrastructure  Whether the basic rural infrastructural facilities in
villages, like, schools, water supply & sanitation facilities, IT &
communication, health, good quality sustainable roads connecting to basic
facilities, like PHC, school, market etc. are adequate?  Whether the current
efforts of the Government in providing rural housing with environmentally
efficient designs with focus on use of solar power, wind energy to meet
energy requirements is adequate?  What should be the strategy to achieve
these futuristic objectives as India reaches 2047?
(iii) Environmental concerns  Considering the current pace of climatic change,
what should be the strategy to reduce greenhouse effects and carbon
 emission and how to achieve these objectives as India reaches 2047?  What
should be the areas which would be focused to achieve these objectives?
(iv) Growing Population & Urbanisation  At the present rate of increase in
population, what should be our strategy to manage population growth and
reduce the load on urban areas?  What should be our strategy for
urbanization of villages?
(v) Agriculture & Allied activities and Development of Rural Industries  The
Agriculture sector of the country is gradually shifting from traditional
method to modernization. However, each system has its positive and
negative aspects. What should be the shape of our Agricultural activities our
country to meet the demand?  What would be our strategy to ensure the
quality of agricultural produce?  India has an important place in production
of traditional handicraft, cottage and food processing industries etc. What
should the strategy adopted to nurture these efforts?
(vi) Employment & Changes in Occupational Structure  Currently, agriculture
sector contributes 18% to the GDP while it employs about 40% of the
workforce. What should be the potential avenues where our workforce
could be meaningfully engaged?  What should be our strategy to impart
knowledge-based skills and encourage female participation in rural
employment sector?
(vii) Technological issues  It is expected that the digital eco-system is going to
rise in the rural areas. India’s large population, provide an opportunity to
pioneer the development of hybrid online-offline systems for Social services,
government services, finance, and business services. What should be our
strategy so that India will be a leading digital economy in the World by 2047?
(viii) Energy  How to address the requirement of energy to the villages by
making available the alternative source of energy viz. wind energy, solar
energy etc., wherever feasible?
(ix) Building of Institutional expertise and Centres of Excellence  What should
be our strategy to achieve convergence between ministries & departments
for building the right set of expertise?  For creating global leaders in our
private and public set of companies, the market place needs to be analysed
first especially for rural India based traditional industries. How should be our
strategy in this regard?
(x) Balanced Regional Development  India is not observing a balanced growth
throughout the country. What should be the strategy to reduce disparities
across Regions and States?
(xi) Quality Assurance & Regulatory Activities  Rule of law and good
governance is a precondition of economic, social and educational
development. What should be the regulatory changes required to achieve
this objectives?
(xii) Research & Development  India is lagging in R&D Activities as compared
to most developed countries. Concern may be given to R&D activities in rural
areas for its holistic development in every sphere of rural life viz. social and
economic. What should be our strategy in this regard?

Vision 2047- Roadmap

 The plan will set specific targets for different economic sectors and will focus
on shifting India from the ranks of merely being an emerging developing
economy to a developed one where all its citizens have purchasing power
that is among the best in the world.

 The key areas identified so far include agriculture, commerce, infrastructure,

industry, urban landscape, security and defence, technology and
governance.
 Benchmarking regulations, procedures and processes to international
standards and aligning them to global standards will be a major area of work
of this framework.
 All ministries would identify focus areas to position India as a leader in these
sectors by executing plans such as restructuring and merging public sector
banks to create 3-4 megabanks, developing 3-4 global champions in every
sector by merger or restructuring, developing the semiconductor industry,
showcasing India as a hub of green technology etc.,
 On the social and environment sector side, balanced development, ease of
living, universal access to basic healthcare, enabling growth of MSMEs,
 eliminating the digital divide and use of technology to achieve true growth
and welfare potential, revamping the energy mix to reduce dependence on
fossil fuels and scaling up the share of renewables and new clean fuels like
green hydrogen and methane are among the government’s medium-term
policy goals.

To achieve the target of becoming a developed nation we must first discuss the
current Economic Growth of the Indian Economy. Only then we can analyse if we
are on the right path.

GDP-The INDIAN ECONOMY

Since the turn of the century, India’s annual GDP growth rate has averaged
6% to 7%. For most of recorded history, up until the early 19th century, the
Indian subcontinent’s economy was the largest in the world. In 2022, India
accounted for 7.2% of the global economy in PPP terms, and around 3.4% in
nominal terms. The graph below shows the various trends in India’s GDP
Growth Rate from 2014-2023.

India’s GDP growth rate over the years-

If we look at the past 10 year trends for the GDP growth rate in India, we can gauge
that India’s GDP growth rate has been a factor of both country’s internal decisions
as well as extrinsic global factors.
 India’s GDP growth rate in 2012 stood at 5.5% which kept growing until 2017. The
decreasing trend continued till the GDP reached negative as for India’s GDP growth
rate 2020 is concerned, the obvious reasons were unmanageable fiscal deficit,
economic disparity, government and political turbulence and of course the
unprecedented COVID 19 pandemic of 2020.
However, the post-pandemic scenario has been a positive end to the light for the
country in the year 2021, where the India GDP growth rate 2021, took a complete
U-turn with a rise of 8.9% where many sectors, specifically healthcare has been a
major contributing factor. We can also look at the GSDP of some Indian States for
measuring growth.

Comparison of GSDP of Indian States (at current prices) in Rs

trillion
25

20

15

10

0
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Haryana 4.96 5.61 6.39 6.98 7.62 7.59 8.78 9.94
Punjab 3.91 4.27 4.71 5.13 5.42 5.3 5.74 6.3
UP 11.38 12.89 14.16 15.85 16.88 17.06 17.49 20.48
Chhattisgarh 2.25 2.63 2.82 3.18 3.45 3.54 4 4.38
Rajasthan 6.81 7.61 8.29 9.22 9.99 9.58 11.98 13.34

Factors that Have Influenced India’s GDP Growth Rate

In recent years, there has been a shift in economic power and focus to the growing
economies of the BRIC countries: Brazil, Russia, India, and China. The BRIC nations'
GDP growth rate is significantly higher than that of historically strong economies
such as the United States and Germany. While the United States has the world's
largest economy by practically any measure, China has the second-highest
percentage of global GDP, with India racing Japan for third place.

Despite the global crisis in 2008 and 2009, India managed to maintain outstanding
GDP growth rates, especially given that the majority of the globe saw a decreasing
trend in at least one of these years.
So let us analyse what are the factors that have recently been contributing to the
roller-coaster growth of India’s GDP.

 The Healthcare Sector: As a result of the pandemic, India has emerged as a

global leader in vaccine production. Vaccine production has begun on a wide
scale in several areas of India, resulting in increased export to other nations
and, as a result, an increase in India's GDP.
 Boom in the Investment Business: Personal and private investment is the
most important factor influencing India's GDP. As the economy's unknown
risks have eventually been known to decrease, Indian firms have become an
appealing host into investment both in the host locally as well as
internationally.

So where is the problem that somewhere pulls back the GDP growth rate in India?
Inflation!
In India, inflation has been rising in recent months. Everyone initially assumed it
was due to supply-side concerns created by the lockout, as demand was definitely
subdued.
However, despite the fact that supply-side concerns and transportation constraints
have already been addressed, inflation remains higher than the objective, and even
exceeds the RBI's target band. Higher inflation, particularly in food, not only
reduces the purchasing power of the poor, but also increases business instability.

Comparison of per capita income of important states and

India (at constant prices)
200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Haryana 137833 150259 156200 166747 177507 165617
Maharashtra 122889 133686 137808 142063 145165 133356
Punjab 100141 105848 110857 115592 118487 112119
India 77659 83003 87586 92133 94270 85110
 Where is India’s GDP growth rate leading to in the Coming Years?

As per the reports, the India GDP growth rate for the year 2022 is 7.8%, even after
the surge in prices, the experts predict a positive end to the fiscal year. However,
for FY 2023-24, the GDP is predicted to fall down to 6.8% and eventually see a rise
in 2024-25 with a growth rate of 7.04%.
The predicted analysis could be the factor of the post-recession recovery across the
globe that is likely to affect India’s GDP growth rate in the short term.
But if we also look at the RBI’s report, the central bank maintained its GDP
prediction of 7.2 percent for the current fiscal year during its monetary policy
meeting earlier in August 2022.
It forecasts growth of 6.2 percent in the second quarter, 4.1 percent in the third
quarter, and 4.0 percent in the fourth quarter, with risks largely balanced. The real
GDP growth rate for the first quarter of the next fiscal year (2023-24) is expected
to be approximately 6.7%.
The central bank also warned that there might be increased risks as a result of
prolonged geopolitical tensions and excessive volatility in the financial market,
which could lead to tight financial conditions. All of these issues may impact India's
GDP growth rates in the future quarters.
Part of the reason for India's positive ride in the economic front up till now, is the
economic liberalization that began in 1991 and stimulated commerce, eventually
leading to the elimination of several public monopolies. However, it cannot be
ignored that the inflationary pressures have however hindered GDP growth in
recent years.
But again on the positive side, India's workforce is rising in the manufacturing and
service sectors, thanks in part to overseas outsourcing, which is a successful
business for the Indian economy. Apart from China, India's agriculture industry is a
worldwide powerhouse, producing more wheat and tea than any other country,
across the globe.
Although, due to the automation of many processes and India's fast rising
population, the country's unemployment rate still remains very high. It would be
interesting to find out how the country caters to its weaknesses and mobilizes the
strength to accentuate its GDP growth rate in the coming years.

We will now look at some of the Major sectors of the Indian economy. To
achieve the targets of the Vision 2047 we need to undergo development in these
important sectors among many others.
 Major Indian Economic Sectors

The Agriculture Sector

India has the second-largest arable land resources in the world. With 20 agri-
climatic regions, all the 15 major climates in the world exist in India. The country
also has 46 of the 60 soil types in the world. India is the largest producer of spices,
pulses, milk, tea, cashew, and jute, and the second largest producer of wheat, rice,
fruits and vegetables, sugarcane, cotton, and oilseeds. Further, India is second in
the global production of fruits and vegetables and is the largest producer of mango
and banana.

The Agriculture and Allied industry sector has witnessed some major
developments, investments and support from the Government in the recent past.

According to the Department for Promotion of Industry and Internal Trade (DPIIT),
the Indian food processing industry has cumulatively attracted Foreign Direct
Investment (FDI) equity inflow of about US$ 25.47 billion between April 2000-
March 2022.

India’s agricultural and processed food products exports stood at US$ 9,598 million
in FY 2022-23 (April-July 2022), up by 30% YoY.

As per First Advance Estimates for FY 2022-23 (Kharif only), total foodgrain
production in the country is estimated at 149.92 million tonnes. Gross Value Added
by the agriculture and allied sector is 18.8% in FY 2021-22 (until 31 January, 2022)

In the Union Budget 2022-23:

Rs. 1.24 lakh crore (US$ 15.9 billion) has been allocated to Department of
Agriculture, Cooperation and Farmers’ Welfare.

Rs. 8,514 crore (US$ 1.1 billion) has been allocated to the Department of
Agricultural Research and Education.

In July 2022, PM Formalisation of Micro food processing Enterprises (PMFME)

scheme was launched for providing financial, technical and business support for
setting up/ upgradation of micro food processing enterprises in the country with
an outlay of Rs. 10,000 crore (US$ 1.27 billion).
In October 2022, Prime Minister Mr. Narendra Modi inaugurated PM Kisan
Samman Sammelan 2022 and released PM-KISAN Funds worth Rs. 16,000 crore
(US$ 1.93 billion)

In August 2022, a Special Food Processing Fund of Rs. 2,000 crore (US$ 242.72
million) was set up with National Bank for Agriculture and Rural Development
(NABARD) to provide affordable credit for investments in setting up Mega Food
Parks (MFP) as well as processing units in the MFPs.

In August 2022, Mr. Narendra Singh Tomar, Minister of Agriculture and Farmers
Welfare inaugurated four new facilities at the Central Arid Zone Research Institute
(CAZRI), which has been rendering excellent services for more than 60 years under
the Indian Council of Agricultural Research (ICAR).

A network of 729 Krishi Vigyan Kendras has been established at the district level
across the country to ensure that newer technologies such as improved variety
seeds of crops, new breeds/ strains of livestock and fish, and improved production
and protection technologies reach farmers.

Prime Minister of India launched the Pradhan Mantri Kisan Samman Nidhi Yojana
(PM-Kisan) Benefits under the PM Kisan plan have been delivered to about 11.78
crore farmers as of February 22 2022, and Rs. 1.82 lakh crore (US$ 23.97 bilion)
have been released to qualified recipients across India in various payments.

Production of horticulture crops in India reached a record 331.05 million metric

tonnes (MMT) in 2020–21 (as per 3rd advance estimate), an increase of 10.5 million
metric tonnes over FY20.

India has the largest livestock population of around 535.78 million, which translates
to around 31% of the world population.

The future outlook of the Agriculture & Allied Industry looks on track with
pandemic easing out. India is expected to achieve the ambitious goal of doubling
farm income by 2022. The agriculture sector in India is expected to generate better
momentum in the next few years due to increased investment in agricultural
infrastructure such as irrigation facilities, warehousing and cold storage.

Furthermore, the growing use of genetically modified crops will likely improve the
yield for Indian farmers. India is expected to be self-sufficient in pulses in the
coming few years due to concerted effort of scientists to get early maturing
varieties of pulses and the increase in minimum support price.
 Healthcare

India's healthcare industry has grown significantly in both employment and

income. The expansion of coverage, services, and rising spending by both public
and private entities are all contributing to the rapid growth of the Indian healthcare
industry. The abundance of highly qualified medical personnel in India is a
competitive advantage. Comparing India to its counterparts in Asia and Western
nations, it is also cost-competitive. Surgery in India costs roughly a tenth of what it
does in the US or Western Europe.

The Indian healthcare sector is expected to record a three-fold rise, growing at a

CAGR of 22% between 2016–22 to reach US$ 372 billion in 2022 from US$ 110
billion in 2016. By FY22, Indian healthcare infrastructure is expected to reach US$
349.1 billion. The e-health market size is estimated to reach US$ 10.6 billion by
2025.

As of 2021, the Indian healthcare sector is one of India’s largest employers as it

employs a total of 4.7 million people. The sector has generated 2.7 million
additional jobs in India between 2017-22 -- over 500,000 new jobs per year.

The Indian medical tourism market was valued at US$ 2.89 billion in 2020 and is
expected to reach US$ 13.42 billion by 2026. According to India Tourism Statistics
at a Glance 2020 report, close to 697,300 foreign tourists came for medical
treatment in India in FY19. India has been ranked 10th in the Medical Tourism Index
(MTI) for 2020-21 out of 46 destinations by the Medical Tourism Association.

The number of allopathic doctors with recognised medical qualifications (under the
I.M.C Act) registered with state medical councils/national medical council
increased to 1.3 million in November 2021, from 0.83 million in 2010.

Between April 2000-June 2022, FDI inflow for the drugs and pharmaceuticals sector
stood at US$ 19.90 billion, according to the data released by Department for
Promotion of Industry and Internal Trade (DPIIT). Inflows in sectors such as
hospitals and diagnostic centres and medical and surgical appliances stood at US$
8.09 billion and US$ 2.71 billion, respectively.

India currently holds the fourth position in attracting VC funding to the health-tech
sector, with investments of US$ 4.4 billion between 2016 and 2021, with US$ 1.9
invested in 2021 alone.

Flipkart Group has announced its foray into the healthcare sector through the
launch of Flipkart Health+. As part of this development, Flipkart has signed
definitive agreements to acquire a majority share in Sastasundar Marketplace
Limited, which owns and operates SastaSundar.com, an online pharmacy and
digital healthcare platform.

Aster DM Healthcare has announced that it is planning Rs. 900 crore (US$ 120.97
million) capital expenditure over the next three years to expand its presence in
India, as it looks at increasing the share of revenue from the country to 40% of the
total revenue by 2025.

Healthcare Sector Growth Trend (US$ Billion)

400 372

350

300 280

250

200
160
150
110
100

50

0
2016 2017 2020 2022
AstraZeneca India has signed a memorandum of understanding (MoU) with Docon
Technologies, a Bengaluru-based health start-up, to digitise 1,000 clinics across
India by implementing customised electronic medical record (EMR) systems in
clinics to offer doctors access to a patient’s complete medical history.

India has made its Covid-19 vaccination platform, CoWIN, open source for all
countries. Almost 76 countries have displayed interest in leveraging the CoWIN
platform to manage their national COVID-19 vaccination drives.

In November 2022, six pharmaceutical companies were chosen by the Indian

Council of Medical Research to produce monkeypox vaccines - Serum Institute of
India, Biological E, Dr. Reddy's Laboratories, Hester Bioscience Ltd., Indian
Immunologicals Ltd., and Reliance Life Sciences.

As of November 18, 2021, 80,136 Ayushman Bharat-Health and Wellness Centres

(AB-HWCs) are operational in India, and 638 e-Hospitals are established across
India as part of the central government's ‘Digital India’ initiative. Edelweiss General
Insurance has also partnered with the Ministry of Health, Government of India, to
help Indians generate their Ayushman Bharat Health Account (ABHA) number.

By March 2022, the Health Ministry’s eSanjeevani telemedicine service had already
crossed 3 crore tele-consultations. Moreover, eSanjeevani telemedicine set a new
record by completing over 1.7 lakhs consultations in a single day.

Prime Minister Mr. Narendra Modi, while speaking at the global COVID-19 summit,
said that India had shared its vaccine production with 95 countries and the UN
peacekeepers. He also stated that India will supply COVID-19 vaccines to other
countries after increased production. He also launched the Ayushman Bharat
Digital Mission, which will connect the digital health solutions of hospitals across
the country with each other. Under this, every citizen will now get a digital health
ID and their health record will be digitally protected.

As of May 2021, 11.9 lakh Health IDs have been generated and 3,106 doctors and
1,490 facilities have registered on the National Digital Health Mission (NDHM)
platform.

The Uttar Pradesh government has announced the introduction of automatic

medicine dispensing machines to expand the primary healthcare industry and
clinical centres in the country.
Minister of Defence, Mr. Rajnath Singh, has launched the ‘Services e-Health
Assistance & Tele-consultation (SeHAT)’ OPD portal to provide telemedicine
services to armed forces personnel and veterans.

The Parliament has passed the National Commission for Allied & Healthcare
Professions Bill 2021, which aims to create a body that will regulate and maintain
educational and service standards for healthcare professionals.

The Government of India is planning to increase public health spending to 2.5% of

the country's GDP by 2025. India's competitive advantage also lies in the increased
success rate of Indian companies in getting Abbreviated New Drug Application
(ANDA) approvals. India also offers vast opportunities in R&D as well as medical
tourism. To sum up, there are vast opportunities for investment in healthcare
infrastructure in both urban and rural India.

Government Healthcare Expenditure (as a % of GDP)

3 2.8

2.5
2.2

2 1.8
1.6
1.5

0.5

0
FY 20 FY 21 FY 22 FY 23

Education

India occupies a significant position in the global education sector. One of the
world's largest networks of institutions of higher learning is found in India. With
almost 27% of India’s population in the age group of 0-14 years, India’s education
sector provides numerous opportunities for growth.

The number of colleges in India stood at 42,343 in FY20. As of November 25, 2022,
the number of universities in India stood at 1,072. India had 38.5 million students
enrolled in higher education in 2019-20, with 19.6 million male and 18.9 million
female students. In FY20, Gross Enrolment Ratio (GER) in Indian higher education
was 27.1%.
The education sector in India was estimated to be worth US$ 117 billion in FY20
and is expected to reach US$ 225 billion by FY25. The Indian edtech market size is
expected to reach US$ 30 billion by 2031, from US$ 700-800 million in 2021.The
online education sector in India is growing rapidly, with growth of US$ 2.28 billion
expected during 2021-2025, at a CAGR of almost 20%. Higher education institutes
in India are focusing on creating online programmes due to the increasing demand
from consumers.

India’s large English-speaking population allows easy delivery of educational

products. India was ranked 48th out of 112 countries in the English Proficiency
Index 2021. Nine Indian institutes - the Indian Institute of Science (IISc) in Bengaluru
and eight Indian Institutes of Technology (IITs) - were among the top 500
universities in the QS World University Rankings 2023. A total of 100 Indian
institutions have been qualified for the Times Higher Education World University
Rankings 2023, with the Indian Institute of Science in Bengaluru being the highest-
ranked.

Edtech startups in India raised US$ 296 million across 5 deals in October 2022.
Amazon has launched its global computer science education initiative in India. The
aim of this initiative is to offer one lakh students the opportunity to study computer
science. Amazon India has also launched the second edition of Machine Learning
(ML) Summer School, with the aim to provide students the opportunity to learn
important ML technologies from Amazon scientists, making them ready for careers
in science.

To liberalise the sector, the Government has taken initiatives such as the National
Accreditation Regulatory Authority Bill for Higher Educational and the Foreign
Educational Institutions Bill. The government schemes of Revitalising Infrastructure
and System in Education (RISE) and Education Quality Upgradation and Inclusion
Programme (EQUIP) are helping the government tackle the prominent challenges
faced by the education sector.

The National Education Policy (NEP), which will be fully implemented over the
course of this decade starting from 2021-22, will have a strong focus on high-quality
vocational education. Under the National Education Policy 2021, the government
will set up regional and national institutes for virology, >15,000 schools, 100 new
Sainik schools, and 750 Eklavya model residential schools in tribal areas.

The Central Government has approved the “New India Literacy Programme” for the
period FY22-27 to cover all the aspects of adult education to align with the National
Education Policy 2020 and Budget Announcements 2022-23.The National
Commission for Women has started a country-wide capacity building and
personality development programme for women undergraduate and postgraduate
students in an effort to make them more independent and job-ready.

STEM-based edtech companies are partnering with Niti Aayog and the government
to build a STEM ecosystem by establishing Atal Tinkering Labs (ATL) to spread
knowledge about STEM, STEAM, AI, ML, and robotics for K-12 students.The
education sector has seen a host of reforms and improved financial outlays in
recent years that could possibly transform the country into a knowledge haven.
With human resource increasingly gaining significance in the overall development
of the country, development of the country’s education infrastructure is expected
to remain the key focus in the current decade. In this scenario, infrastructure
investment in the education sector is likely to see a considerable increase.

Expected Growth In Student Enrolment in Higher Education -

Number of Students (in Million)
100

90 92

80

70 72

60
53
50

40 40

30

20

10

0
FY 20 FY 25 FY 30 FY 35
 Services

he services sector of India remains the engine of growth for India’s economy and
contributed 53% to India’s Gross Value Added at current prices in FY21-22 (as per
advance estimates). India’s services sector GVA increased at a CAGR of 11.43% to
Rs. 101.47 trillion (US$ 1,439.48 billion) in FY20, from Rs. 68.81 trillion (US$
1,005.30 billion) in FY16. Between FY16 and FY20, financial, real estate and
professional services grew at a CAGR of 11.68% (in Rs. terms), while trade, hotels,
transport, communication and services related to broadcasting registered a CAGR
of 10.98% (in Rs. terms). The sector provides employment to a large share of Indian
population.

The services sector has seen some developments, investments and support from
the Government in the recent past.

In September 2022, the Manufacturing Purchasing Managers’ Index (PMI) in India

stood at 55.1.

India’s service exports stood at US$ 181.39 billion, whereas imports stood at US$
106.45 billion in April-October 2022.

According to RBI: Bank credit stood at Rs. 126.30 trillion (US$ 1.55 trillion) as of
September 23, 2022.Credit to non-food industries stood at Rs. 126.08 trillion (US$
1.54 trillion) as of September 23, 2022.Coforge Limited, a global digital services and
solutions provider announced the opening of its center of excellence (CoE) for the
Metaverse and Web3 on August 30, 2022.

In June 2022, HCL Technologies (HCL), a leading global technology company,

announced the opening of its new 9,000 sq. ft. delivery center in Vancouver,
Canada. The new center will significantly expand its presence in the country to
serve clients primarily in the HiTech industry.

India’s telephone subscriber base stood at 1,171.92 million as of September 30,

2022. IT-BPM industry revenues stood at US$ 227 billion in FY22 with a YoY growth
rate of 15.5%.

The Indian services sector was the largest recipient of FDI inflows worth US$ 94.19
billion between April 2000-March 2022. The services category ranked 1st in FDI
inflow as per data released by the Department for Promotion of Industry and
Internal Trade (DPIIT).

In the first-half of 2021, private equity investments in India stood at US$ 11.82
billion, as compared with US$ 5.43 billion in the same period last year.
By October 2021, the Health Ministry’s eSanjeevani telemedicine service, crossed
14 million (1.4 crore) teleconsultations since its launch, enabling patient-to-doctor
consultations, from the confines of their home, and doctor-to-doctor
consultations.The Indian government is planning to introduce a credit incentive
programme worth Rs. 50,000 crore (US$ 6.8 billion) to boost healthcare
infrastructure in the country. The programme will allow companies to access funds
to ramp up hospital capacity or medical supplies with the government acting as a
guarantor.

In October 2021, Prime Minister, Mr. Narendra Modi, approved the establishment
of 157 new medical colleges to boost accessibility of affordable health treatments
among citizens.

In an effort to build IT capabilities and competitive advantage over international

players, Indian companies plan to deploy ~10 cloud platforms to drive business
transformation in sectors such as retail, telecommunication and insurance, which
is expected to boost growth in the IT & BPM sector.

The Government has undertaken various steps towards boosting growth of the
services sector. The Government introduced ‘Services Exports from India Scheme’
(SEIS) aimed at promoting export of services from India by providing duty scrip
credit for eligible exports. Under this scheme, a reward of 3-5% of net foreign
exchange earned is given for Mode 1 and Mode 2 services.

In October 2021, the government launched a production linked incentive (PLI)

scheme to boost manufacturing of telecom and networking products in India. The
scheme is expected to attract an investment of Rs. 3,345 crore (US$ 446.22 million)
over the next four years and generate additional employment for >40,000
individuals.

In October 2021, the government launched phase-II of the Mahatma Gandhi

National Fellowship to empower students and boost skill development. In October
2021, the PM Ayushman Bharat Health Infrastructure Mission was launched by the
government, to strengthen the critical healthcare network across India in the next
four to five years.

The future outlook of the services sector looks on track with pandemic easing
out.India‘s IT and business services market is projected to reach US$ 19.93 billion
by 2025. In the healthcare sector, the telemedicine market is driving growth with
the increasing demand for remote consultation. By 2025, the telemedicine market
in India is expected to reach US$ 5.5 billion. Home healthcare industry in India is
expected to reach US$ 10 billion by 2025.
The implementation of the Goods and Services Tax (GST) has created a common
national market and reduced the overall tax burden on goods. It is expected to
reduce costs in the long run-on account of availability of GST input credit, which
will result in the reduction in prices of services. India's software service industry is
expected to reach US$ 1 trillion by 2030.

Micro,Small and Medium Enterprises (MSME)

According to the provisions of Micro, Small & Medium Enterprises Development

(MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified
in two classes i.e.-

Manufacturing Enterprises and Service Enterprises.

The enterprises are further categorized based on investment in equipment and

annual turnover.
 CRITERIA MANUFACTURING SERVICE
TURNOVER INVESTMENT TURNOVER INVESTMENT
MICRO Upto Rs.5 Less than Rs. Upto Rs.5 Less than
crores 25 lakh crores
Rs. 10 lakh

SMALL Upto Rs.5 More than Rs. Upto Rs.50 More than Rs.
crores 25 lakh but crores 10 lakh but
less than Rs. 5 less than Rs. 2
crore crore
MEDIUM Upto Rs. 250 More than Rs. Upto Rs.250 More than Rs.
crores 5 crore but crores 2 crore but
less than Rs. does not
10 crore exceed Rs. 5
crore

As of November 2022, the GeM portal has served 12.28 million orders worth Rs.
334,933 crores (US$ 40.97 billion) from 5.44 million registered sellers and service
providers for 62,247 buyer organisations.

As per data from the Ministry of Micro, Small & Medium Enterprises, as of
November 25 2022, the Udyam Registration portal registered 12,201,448 MSMEs,
replacing the former process of filing for a Udyog Aadhaar Memorandum (UAM).
Registered micro-enterprises stood at 11,735,117 (96.17%), followed by small
enterprises at 426,864 (3.49%) and midsized enterprises at 39,467 (0.32%).

As of November 26, 2021, under the top five state-wise Udyam registrations,
Maharashtra recorded maximum number of registrations with 12.18 lakh units,
followed by Tamil Nadu (6.23), Gujarat (4.86), Rajasthan (4.68) and Uttar Pradesh
(4.45). New online system of MSME/Udyam Registration launched by the Union
MSME Ministry, w.e.f. July 01, 2020, successfully registered >5.7 million MSMEs
until November 2021. Aero India 2021 resulted in orders worth Rs. 203 crore (US$
27.76 million) for 45 MSMEs that participated in the event. In June 2021, the
Ministry of Micro, Small and Medium Enterprises extended the validity of Udyog
Aadhaar Memorandum from March 31, 2021, to December 31, 2021.
The Ministry of MSME runs numerous schemes targeted at providing credit and
financial assistances such as the Prime Minister’s Employment Generation
Programme, Credit Linked Capital Subsidy Scheme, Credit Linked Capital Subsidy
Scheme; Skill development and training schemes such as A Scheme for Promotion
of Innovation, Rural Industry & Entrepreneurship (ASPIRE), Entrepreneurship and
Skill Development Programmes (ESDP); infrastructure development schemes such
as Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Scheme for
Micro & Small Enterprises Cluster Development Programme (MSE–CDP) and
technological and quality upgradation schemes such as Financial Support to MSMEs
in ZED Certification and Support for Entrepreneurial and Managerial Development
of SMEs through Incubators.

To provide reliable measures and set benchmark to boost and strength the MSME
sector in India, TransUnion CIBIL, in partnership with the Ministry of Statistics &
Programme Implementation (MoSPI), launched the MSME Credit Health Index on
November 2, 2020.

As on July 8, 2022 the number of loans sanctioned under the Pradhan Mantri
MUDRA Yojana (PMMY) scheme was 10.03 million and the amount disbursed was
Rs. 73,199.89 crore (US$ 9.15 billion).

The Indian government launched the Special Credit Linked Capital Subsidy Scheme
(SCLCSS) in November 2021 for the services sector. This scheme will help
enterprises in the services sector meet various technology requirements. The
Indian government announced to extend the scope of the Emergency Credit Line
Guarantee Scheme (ECLGS) to MSMEs and extend it until March 2022.
Indian Micro, Small and Medium Enterprises (MSMEs) are rapidly adopting digital
payments over cash, with 72% payments done through the digital mode compared
with 28% cash transactions. Rise in digital adoption presents prospects for further
growth in the sector.

The BSE SME (small and medium enterprises) platform is expected to witness >60
SMEs to enter the market in one year (2021-22) to bring up equity funds for
meeting their business requirements.

The initial public offering (IPO) route witnessed 16 SMEs enter the market; they
raised Rs. 100 crore (US$ 13.74 million) in 2020. In June 2021, Bombay Stock
Exchange (BSE) announced that it has collaborated with Electronics and Computer
Software Export Promotion Council (ESC) to build awareness among small
businesses and start-ups about advantages of listing. In the Union Budget of 2022-
23 MSMEs sector was allocated an Emergency Credit Line Guarantee Scheme
(ECLGS) of Rs. 50,000 crore (US$ 6.55 billion).

On March 30 2022, the Indian government allocated Rs. 6,062.45 crore (US$ 808
million) for the scheme Raising and Accelerating MSME Performance (RAMP). The
programme aims to improve market and credit access, strengthen institutions and
governance at the centre and state levels, improve centre-state connections and
partnerships, resolve late payment difficulties, and green MSMEs.

In September 2021, Aerospace Engineers Private Limited, a Tamil Nadu-based

MSME, secured a contract from Boeing to produce and supply critical aviation
components. Walmart and Flipkart announced the completion of the first phase of
training of >2,500 MSMEs under Vriddhi, the supplier development programme.

Flipkart introduced 'Flipkart Boost’ to help digital-first consumer brands and

empower MSMEs. HDFC Bank collaborated with the National Small Industries
Corporation (NSIC) to offer credit support to the micro, small and medium
enterprise (MSME) sector.

In August 2021, the US Agency for International Development (USAID) and the US
International Development Finance Corporation (DFC) collaborated with Kotak
Mahindra Bank to support MSMEs.

In August 2021, Facebook India, in collaboration with Indifi, announced ‘Small

Business Loans Initiative’, a new programme to support small and medium
businesses (SMBs) get quick access to credit via independent lending partners.
In August 2021, Indian Bank introduced 'MSME Prerana', an online business-
mentoring programme for MSMEs in Odisha. In FY21, the state (Odisha) accounted
for ~5% of the total MSME credit exposure of Indian Bank and recorded an increase
of 39% YoY.

The NSIC, through an MoU with APEDA, will help its MSME members in exploring
the export potential of their agricultural and processed foods products.
Additionally, APEDA members will get access to NSIC schemes, which would help
them address issues pertaining to technology adoption, skills, product quality, and
market access

Budget allocation for MSMEs in FY22 more than doubled to Rs. 15,700 crore (US$
2.14 billion) vis-à-vis Rs. 7,572 crore (US$ 1.03 billion) in FY21.

In July 2021, Lok Sabha passed a bill on ‘Factoring Regulation (Amendment)’ to

expedite the payments ecosystem for MSMEs.

The government also announced Rs. 3 lakh crore (US$ 40.85 billion) collateral-free
automatic loans for businesses.

In Union Budget 2021, the government announced funds worth Rs. 10,000 crore
(US$ 1.36 billion) for ‘Guarantee Emergency Credit Line’ (GECL) facility to eligible
MSME borrowers, giving a major boost to the sector.

In November 2021, the Ministry of Micro, Small and Medium Enterprises launched
SAMBHAV, a national-level awareness programme to push economic growth by
promoting entrepreneurship and domestic manufacturing.

In September 2021, Union Minister for MSMEs, Mr. Narayan Rane introduced ‘India
Export Initiative’ and ‘IndiaXports 2021 Portal’. This initiative will help exports
reach its Rs. 2,928,000 crore (US$ 400 billion) target by the end of FY22 and further
push it to Rs. 7,320,000 crore (US$ 1 trillion) by FY27.

In September 2021, Khadi and Village Industries Commission (KVIC) established the
first ‘Silk Yarn Production Centre’ in Odisha to boost the local silk industry and
generate employment. Khadi and Village Industries Commission (KVIC) launched
SPIN (Strengthening the Potential of India) scheme and built a pottery cluster under
SFURTI Scheme in Varanasi to support >1,100 individuals of the marginalised
potters’ community. Union Minister for MSMEs, Mr. Narayan Rane inaugurated
Rohtak Technology Centre, which is expected to train >8,400 trainees annually.
 Key MSME States in India (% share)
25

19.39
20 18.71

15

10
7.62 7.54
5.87
5

0
Maharshtra Tamil Nadu Gujarat Rajasthan Karnataka

Key MSME States in India

The Road Ahead

1. Agriculture- The agriculture sector in India is expected to generate better

momentum in the next few years due to increased investment in agricultural
infrastructure such as irrigation facilities, warehousing, and cold storage.
Furthermore, the growing use of genetically modified crops will likely improve the
yield for Indian farmers. India is expected to be self-sufficient in pulses in the
coming few years due to the concerted effort of scientists to get early maturing
varieties of pulses and the increase in minimum support price.

In the next five years, the central government will aim US$ 9 billion in investments
in the fisheries sector under PM Matsya Sampada Yojana. The government is
targeting to raise fish production to 220 lakh tonnes by 2024-25.

Going forward, the adoption of food safety and quality assurance mechanisms such
as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard
Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP),
and Good Hygienic Practices (GHP) by the food processing industry will offer several
benefits.

Through the Ministry of Food Processing Industries (MoFPI), the Government of

India is taking all necessary steps to boost investments in the food processing
industry in India. Government of India has continued the umbrella PMKSY scheme
with an allocation of Rs. 4,600 crores (US$ 559.4 million) till March 2026.
2. Healthcare- India’s healthcare sector is extremely diversified and is full of
opportunities in every segment, which includes providers, payers, and medical
technology. With the increase in the competition, businesses are looking to explore
the latest dynamics and trends which will have a positive impact on their business.
The hospital industry in India is forecast to increase to Rs. 8.6 trillion (US$ 132.84
billion) by FY22 from Rs. 4 trillion (US$ 61.79 billion) in FY17 at a CAGR of 16–17%.

India is a land full of opportunities for players in the medical devices industry. The
country has also become one of the leading destinations for high-end diagnostic
services with tremendous capital investment for advanced diagnostic facilities,
thus catering to a greater proportion of the population. Besides, Indian medical
service consumers have become more conscious towards their healthcare upkeep.
Rising income levels, an ageing population, growing health awareness and a
changing attitude towards preventive healthcare is expected to boost healthcare
services demand in the future. Greater penetration of health insurance aided the
rise in healthcare spending, a trend likely to intensify in the coming decade.

The Government aims to develop India as a global healthcare hub and is planning
to increase public health spending to 2.5% of the country's GDP by 2025.

3. Education- In 2030, it is estimated that India’s higher education will:

 Combine training methods that involve online learning and games, and it is
expected to grow by 38% in the next 2-4 years.
 Adopt transformative and innovative approaches in higher education.
 Have an augmented Gross Enrolment Ratio (GER) of 50%.
 Reduce state-wise, gender-based and social disparity in GER to 5%.
 Emerge as the single largest provider of global talent with one in four
graduates in the world being a product of the Indian higher education
system.
 Be among the top five countries in the world in terms of research output with
an annual R&D spend of US$ 140 billion.
 Have more than 20 universities among the global top 200 universities.

Various government initiatives are being adopted to boost the growth of the
distance education market, besides focusing on new education techniques such as
E-learning and M-learning.

The Government of India has taken several steps including opening of IIT’s and IIM’s
in new locations, as well as allocating educational grant for research scholars in
most government institutions. Furthermore, with the online mode of education
increasingly being used by several educational organisations, the higher education
sector in India is set for major change and development in the years to come.

4. Services- Both domestic and global factors influence the growth of the services
sector. An extensive range of service industries have experienced double digit
growth in recent years, supported by digital technologies and institutional
frameworks made possible by the government. The ease of doing business in India
has significantly increased for domestic and foreign firms due to considerable
advancements in culture and the government outlook. Due to ongoing changes in
the areas of lowering trade barriers, easing FDI regulations, and deregulation,
India's services sector is poised to grow at a healthy rate in the coming years.

By 2025, healthcare industry is expected to reach US$ 372 billion. India’s digital
economy is estimated to reach US$ 1 trillion by 2025. By end of 2023, India’s IT and
business services sector is expected to reach US$ 14.3 billion with 8% growth. The
implementation of the Goods and Services Tax (GST) has created a common
national market and reduced the overall tax burden on goods. It is expected to
reduce costs in the long run-on account of availability of GST input credit, which
will result in the reduction in prices of services. India's software service industry is
expected to reach US$ 1 trillion by 2030.

Due to ongoing changes in the areas of lowering trade barriers, easing FDI
regulations, and deregulation, India's services sector is poised to grow at a healthy
rate in coming years.

5. MSME- The Government of India has envisioned doubling the Indian economy
to US$ 5 trillion in five years. In order to achieve this goal, career opportunities for
the young population have been generated and MSMEs have the potential to serve
as a key employment generator. Therefore, the government has taken up
promotion of MSMEs in order to create new jobs in the sector. Further, the
government aims to enhance MSME’s share in exports and its contribution to GDP.

In order to achieve these targets, the government should invest in providing more
back-end services to improve performance of the MSME sector as it supplies goods
and services to big industrial enterprises. Lack of technology-based production
activities and low investment in R&D activities are bottlenecks hindering the sector
to become competent. Globally available technology could be subsidised by the
government so that the product quality of MSME players can be improved using
the existing resources. This also requires the help of academic institutions in the
form of providing research and development (R&D) services for product
innovation.
 Conclusion

According to the Vision India @2047, India aims to transform into a New India
which has grown holistically on the principles of equity, opportunity and social
justice. This can certainly be achieved by ensuring accessibility, affordability, quality
and well governed systems and facilities with larger transparency and successful
delivery.

India aims to deliver on its ambitious targets of delivering universal access to its
citizens to services like water, sanitation, waste management, affordable housing,
power electricity in line with short and medium horizon goals set out by the current
initiatives of the government including fulfilment of Sustainable Development
Goals, 'No one must be left behind' ought to be the mantra to move forward. India
also targets to achieve equitable employment and sustainable livelihood
opportunities. This will surely be achieved through means of skilling, upskilling, and
social interventions for inclusive empowerment. Incubation centres supported by
local industry associations and domain experts would be crucial in creating a
thriving economic and employment market.

By reaching amongst the top 50 nations in Human Development Index, India as a

country is and will work tirelessly to achieve more than her targets and grow more
than her expectations. The government of India believes in the idea of 'Sabka Saath
Sabka Vishwaas Sabka Prayaas' and considers it the ultimate methodology to
achieve the smallest of the deeds. Hence, collective participation is important to
manifest and attain success.

The government of India is extremely proud for whatever India has been able to
achieve so far despite strenuous challenges and obstacles. The government holds
enormous amount of faith in it's citizens to not stop until we reach the top.
 References

Vision India 2047-

https://darpg.gov.in/sites/default/files/CSD-2022/vision%202047.pdf

Indian Brand Equity Foundation

https://www.ibef.org/economy/indian-economy-overview

Department of Statistical and Economic Affairs

https://www.india.gov.in/website-directorate-economics-and-statistics

https://pib.gov.in/PressReleseDetail.aspx?PRID=1888514

Niti Aayog

https://niti.gov.in/

https://www.investindia.gov.in/team-india-blogs/developed-india-vision-
progress-towards-2047

Planning and Research Dept

https://pandr.py.gov.in/vision-india-2047-document

https://rural.nic.in/sites/default/files/Vision_Document_For_2047_Centenary_of
_India_Independence_02022022_2.pdf