The election fever has caught on fire across India. With 968 million voters registered until now, it will be one of the most important celebrations of democracy. While the results are bound to have an impact on the country, the whole world too keenly watches the same.
The young electorate has several demands and this election is crucial because it has people across a broad spectrum to satisfy; right from farmers to AI techies. But whoever comes to power, emphasising on few major agendas will help India retain its growth momentum.
Continuing capital investment
India has just begun its capital investment. To benefit out of China plus one and to function as a successful manufacturing alternative, it is crucial to pump in funds into infrastructure. Continuing the momentum established will be necessary. While the government has stepped up, an equal participation from private players is yet to happen. It continues to be substantially lower than the peak of 31 per cent (fixed capital formation as per cent of GDP) in 2011. The government has extended several schemes to spur private activities and perhaps in a few more years, there could be an increase in investment as the capacity utilisation in Indian industry is close to 75 per cent. At these levels, most companies start to plan expansion and investment and it will take few years for them to materialise, and for the benefits to trickle down. The new government must keep up this investment pace and also look out for more schemes to enhance private participation.
Decarbonisation of economy
Going green is no longer a choice but a mandate. Only with a well-laid vision for transition, it will be possible to achieve our goal of net zero by 2070. To get climate funds and to channelise them effectively for adaptation and mitigation, will be crucial in balancing both growth and emissions.
Digitalisation
The main identity of the Indian economy is its focus on digitalisation and ability to penetrate the benefits across all sections of society. This should be furthered as it is the order of the day. A unique aspect of India is its vast population with challenges of multifarious dimensions. Any solution that works here can be easily scaled up to global level. Like the UPI movement, India offers scope for more breakthrough innovations.
Research and development
It is well-evident that the growth of any economy is fuelled by its’ focus on research and development. While the gross expenditure on R&D has increased, it is still just about 0.7 per cent of GDP. Economies similar to India invest much more than this. In this 57th annual issue, IE will focus on the imperative need to ramp up R&D. As India envisions to translate to a knowledge-based economy, this will be a crucial investment that must be done now, to reap benefits in the future. We have presented the view of experts across various fields.
