Viksit Bharat isn’t just about economic growth; it’s about inclusive and sustainable development. Prof. S. Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister, spoke about this at the 7th Annual Economics Conference at Ahmedabad University.
He highlighted the importance of quality jobs for inclusive growth. Key topics included the gig economy, participation of women, youth employment, and the role of technology like AI in shaping jobs. Improving education, health, and nutrition can also help address inequalities.
Interestingly, the idea of “Swadeshi” today isn’t about reverting to old import policies. It’s about enhancing our competitiveness in the global market.
Prof. Dev pointed out two significant challenges in the Indian economy. First, there’s a need to shift from agriculture to manufacturing. He emphasized that labor-intensive manufacturing can help absorb more workers and boost exports. Despite global challenges, India remains a bright spot due to proactive reforms.
For instance, India’s recent budget focuses on capital expenditure rather than just revenue, improving tax systems, and promoting ease of doing business. These reforms create a favorable environment for investment. Prof. Dev noted that political and macroeconomic stability are vital factors supporting India’s resilience.
Another major issue lies in health, education, and skills. Though we have excellent higher education institutions, primary education struggles with poor learning outcomes. Improving these can drive long-term growth.
On growth drivers, he noted that private sector investment is key. Currently, the investment rate is around 31-32%, but he believes it should rise to 34-35%. This shift requires businesses to reinvest rather than hoard cash. He also mentioned that exports, which only account for 20% of GDP, need to play a larger role.
Despite global uncertainties, domestic conditions are favorable with low inflation and supportive measures from the Reserve Bank of India. These factors can stimulate both rural and urban demand.
In the context of global developments, Prof. Dev discussed the fourth industrial revolution, highlighting how AI and automation are reshaping industries. He believes that both manufacturing and services need to work hand in hand, as manufacturing fuels service sector growth.
The government has already eliminated many outdated compliance requirements and laws to streamline the manufacturing process. However, the sector faces a critical issue known as the “missing middle,” where most firms are small, often with fewer than 10 employees. Expanding mid-sized companies—those with 200 to 500 employees—could strengthen the economy further.
In summary, addressing these structural issues—employment, health, and education—while fostering a competitive manufacturing sector can significantly impact India’s economic future, making it both resilient and inclusive.
For more insights on India’s economic strategies, you can check out the detailed reports from [The Economic Times](https://economictimes.indiatimes.com/). They provide valuable data and expert analysis on ongoing reforms and their implications.
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Prof S Mahendra Dev EAC-PM, Viksit Bharat, India manufacturing vs services debate, employment India 2026, missing middle in manufacturing, structural transformation from agriculture to manufacturing in India
