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    Reforms Needed For India To Become A Developed Country

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    savymawthoh

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    Reforms Needed For India To Become A Developed Country

    Uploaded by

    savymawthoh
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    Reforms-needed-for-India-to-become-a-Developed-Country

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    3 views2 pages

    Reforms Needed For India To Become A Developed Country

    Uploaded by

    savymawthoh

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Insights Mindmap

    General Studies-3; Topic: Indian Economy and issues relating to planning, mobilization
    of resources, growth, development and employment.

    Reforms needed for India to become a Developed Country


    Introduction
    • India, despite being the world's fifth-largest economy, is currently classified as a developing nation.
    • India aims to become a developed country by 2047.
    • This will require a 7.5% annual growth in per capita income and a 9% GDP growth.

    Characteristics of a Developed Country


    • Economic Factors
    o High per capita income
    o Diversified industrial and service sectors
    o Robust infrastructure
    o Stable and efficient financial markets
    • Social and Human Development Factors
    o HDI score above 0.8 are considered developed
    o High levels of education and literacy
    o Access to quality healthcare and social services
    o Robust legal and political institutions
    • Technological Factors
    o Advanced technological infrastructure
    o Strong emphasis on R&D
    o High levels of innovation and productivity

    www.insightsonindia.com Page 1 InsightsIAS


    Insights Mindmap

    Major Advantages for India


    • India's services sector accounts for over 50% of GDP, offering high-value jobs and attracting foreign
    investment.
    • India's young population presents a vast human capital pool for economic growth.
    • Digital India Initiative and Unified Payment Interface democratisation drive digital revolution.
    • Pradhan Mantri Gati Shakti National Master Plan drive infrastructure development.
    • Despite global uncertainties, India's domestic demand shows resilience, with an expected over 7%
    real GDP growth in 2024-25.

    Challenges for India


    • Despite 7.8% economic growth in FY 2023–24, job creation remains insufficient.
    • 44% of the workforce is in agriculture, that contributes only 15% to GDP.
    • Poor primary and secondary education limits cognitive development and higher education benefits.
    • Public debt at 81.9% of GDP raises fiscal sustainability concerns, crowding out private investment.
    • 22.6% of national income went to the top 1% in 2022-23, hindering inclusive growth.
    • Rural areas suffer from poverty and lack of infrastructure.
    • Up to 4.5% of India's GDP could be at risk by 2030 due to climate change (RBI).
    • The infrastructure gap in transportation, power, and urban sectors is estimated at USD 1.5 trillion
    (World Bank).

    Way Forward
    • Focus on sustained fiscal deficit reduction.
    • Invest in vocational education and industry aligned skills.
    • Tier II cities should be focused as they have the potential to generate 70% of the country’s new jobs
    and GDP over the next 20 years.
    • Prioritise rural infrastructure and promote agro-processing.
    • Increase healthcare spending and promote preventive measures.
    • Explore new financing models (e.g. Crowdfunding) and public-private partnerships for infrastructure
    financing.
    • Boost R&D investment and establish innovation Ecosystems.
    • Develop sustainable maritime activities and coastal infrastructure.

    www.insightsonindia.com Page 2 InsightsIAS

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