Targeting Higher Growth Rate for India
Why in News?
- Targeting Higher Growth Rate for India, India is striving to achieve a higher and sustainable economic growth rate to meet its developmental goals, including the aspiration to become a developed nation by 2047. This necessitates addressing structural challenges and implementing strategic reforms to boost productivity, employment, and overall economic resilience.
Important Key Points:
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Current Growth Projections:
The Reserve Bank of India (RBI) projects a growth rate of 7% for 2023-24, while the International Monetary Fund (IMF) and the World Bank estimate it at 6.3%. -
Challenges to Growth:
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Declining Export Trends: India’s share in global exports, particularly in labor-intensive sectors, has been decreasing over the past five years.
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Global Economic Conditions: Deglobalization trends, geopolitical conflicts, and sanctions have disrupted supply chains and international trade, impacting India’s export-led growth strategy.
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Industrial Sector Lag: The industrial growth rate has not kept pace with the overall GDP growth, raising concerns about the sustainability of the current growth model.
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Strategic Measures for Higher Growth:
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Boosting Manufacturing: Enhancing the manufacturing sector’s contribution to GDP through initiatives like the Production-Linked Incentive (PLI) scheme and infrastructure projects such as PM Gati Shakti.
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Enhancing Exports: Diversifying export markets and products to mitigate risks associated with global economic uncertainties.
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Strengthening Infrastructure: Investing in infrastructure development to improve connectivity and support industrial growth.
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Promoting Skill Development: Focusing on education and vocational training to equip the workforce with skills aligned with industry demands.
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