India Charts Course for 2047: Economic Advisory Council Outlines Three-Pronged Development Vision
New Delhi – As India aims to turn into a developed economy by 2047, a clear roadmap focusing on sustained economic growth, social inclusion, and environmental sustainability is taking shape. Professor S. Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), on Tuesday articulated this three-pronged vision during a fireside chat at BS Manthan, a flagship event hosted by Business Standard at Bharat Mandapam in New Delhi. The discussion centered on the ‘Reforms Agenda’ and highlighted the critical steps needed to propel India forward in the coming decades.
The ambitious goal of achieving developed nation status by 2047 requires a fundamental shift in economic strategy, according to Prof. Dev. This isn’t simply about increasing Gross Domestic Product (GDP), but about ensuring that growth is inclusive, benefiting all segments of society, and environmentally responsible. The focus on these three pillars – growth, inclusion, and sustainability – represents a holistic approach to development, acknowledging the interconnectedness of economic progress, social equity, and ecological preservation.
Professor Dev’s outline comes at a pivotal moment for the Indian economy, which has experienced significant reforms since 2014. These reforms, he argues, have laid the groundwork for a structural transformation, positioning India for sustained growth. The EAC-PM Chairman, who assumed his role in June 2025, succeeded an interim period following a vacancy since November, brings extensive experience in development economics and financial sector policy to the position. He previously served as Director and Vice Chancellor of the Indira Gandhi Institute of Development Research (IGIDR) in Mumbai for twelve years, from 2010 to 2022, and as Chairman of the Commission for Agricultural Costs and Prices, Ministry of Agriculture from 2008 to 2010. His full profile is available on the EAC-PM website.
Raising Per Capita Income: The Growth Engine
The first pillar of India’s 2047 vision centers on significantly raising per capita income. Prof. Dev emphasized that achieving this will necessitate a concerted effort to boost exports, foster technological innovation, enhance productivity, and improve human capital. A key component of this strategy is increasing female labor force participation, which currently stands at approximately 35% in India, significantly lower than the global average of 50%. Closing this gap is seen as crucial for unlocking India’s full economic potential. According to World Bank data, India’s per capita income in 2022 was approximately $2,388, highlighting the substantial growth needed to reach developed nation levels.
Technology, particularly digitalization and artificial intelligence (AI), is expected to play a transformative role in driving productivity and economic expansion. The government’s focus on initiatives like ‘Digital India’ and the promotion of AI research and development are aligned with this objective. Prof. Dev underscored the importance of total factor productivity – a measure of how efficiently inputs are used in production – as a key driver of long-term growth. Investing in education, skills development, and infrastructure are all vital to improving total factor productivity.
Inclusion and Employment Generation
The second crucial goal is fostering inclusion through the creation of quality employment opportunities. Prof. Dev identified two persistent structural issues hindering India’s progress: a lack of labor-intensive manufacturing and weaknesses in the health and education sectors. Addressing these challenges requires targeted policies and investments. The ‘Make in India’ initiative, launched in 2014, aims to boost domestic manufacturing, but its impact has been uneven. Invest India, the national investment promotion agency, provides detailed information on the initiative and its progress.
Strengthening the healthcare and education systems is equally critical. Improved access to quality healthcare and education will not only enhance human capital but also contribute to a more equitable and inclusive society. The National Education Policy (NEP) 2020, approved by the Union Cabinet in July 2020, represents a significant step towards reforming the education system, focusing on skill development and holistic learning. Addressing regional disparities in access to healthcare and education will also be essential for ensuring inclusive growth.
Sustainability and the Net Zero Target
The third pillar of India’s development vision is achieving net zero carbon emissions by 2070. This ambitious target reflects India’s commitment to addressing climate change and transitioning to a low-carbon economy. The commitment to net zero by 2070 was announced by Prime Minister Narendra Modi at the 2021 United Nations Climate Change Conference (COP26) in Glasgow. The Press Information Bureau of India provides detailed information on India’s climate commitments.
Achieving this goal will require significant investments in renewable energy sources, energy efficiency measures, and sustainable transportation systems. India has already made substantial progress in expanding its renewable energy capacity, particularly in solar and wind power. However, further acceleration is needed to meet the 2070 target. The government is also promoting electric vehicles (EVs) and investing in green technologies to reduce carbon emissions. Balancing economic growth with environmental sustainability will be a key challenge in the coming decades.
Reforms Since 2014 and the Path Forward
Prof. Dev highlighted the significant reforms undertaken since 2014 as laying the foundation for India’s transformation into a developed economy. He emphasized the central role of fiscal reforms in this process. The Reserve Bank of India (RBI) has implemented several measures to strengthen the banking sector and improve financial stability. Programs like the Production Linked Incentive (PLI) scheme are designed to boost domestic manufacturing, while recent Free Trade Agreements (FTAs) aim to enhance access to global markets. The PLI scheme, launched in 2020, offers financial incentives to companies based on incremental sales of locally manufactured goods. Details of the PLI scheme are available on the PIB website.
However, Prof. Dev stressed the need for continued reforms at both the state and national levels, as well as greater coordination across policy areas. Capital expenditure is crucial for infrastructure development, while tax reforms and the Goods and Services Tax (GST) are essential for improving consumption and market efficiency. Financial sector reforms are needed to ensure adequate credit flow to businesses and individuals. The synergy between these reforms, he argued, is vital for sustained economic progress.
Navigating Global Uncertainty
Addressing global economic uncertainties is also a key priority. Prof. Dev stated that India is well-prepared to deal with external shocks, citing the ‘Aatmanirbhar Bharat’ (Self-Reliant India) initiative as a response to global turmoil. The Aatmanirbhar Bharat Abhiyan, launched in May 2020, aims to promote domestic production and reduce reliance on imports. Invest India provides comprehensive information on the initiative.
He also acknowledged the increasing geopolitical nature of global trade, noting that the current global trade environment is less predictable. Improving the ease of doing business and continuing deregulation efforts are seen as essential for attracting investment and promoting economic growth. India’s ability to navigate these challenges will be crucial for achieving its 2047 vision.
Manufacturing, Agriculture, and the Road Ahead
Addressing concerns about manufacturing stagnation, Prof. Dev clarified that while the sector’s share of the economy has remained relatively flat, the value added in manufacturing has increased by 75% in real terms over the past decade. He emphasized the growing importance of the services sector and the close link between manufacturing and services. Private capital and foreign direct investment (FDI) are also flowing into the manufacturing sector at the state level.
In the agricultural sector, Prof. Dev noted the positive performance of the sector over the past decade but highlighted the continued reliance on rice, wheat, and sugarcane, which account for approximately 80% of water usage. Diversifying cropping patterns is seen as essential for sustainable agriculture. He also stressed the importance of post-harvest activities, such as warehousing, and integrating slight and marginal farmers with Farmer Producer Organizations (FPOs) and cooperatives. The increasing adoption of digital tools and artificial intelligence in agriculture is also expected to boost productivity and efficiency.
As India progresses towards its 2047 goal, continued policy reforms, strategic investments, and a commitment to inclusive and sustainable development will be paramount. The next key milestone to watch for will be the release of the next five-year plan, expected in early 2026, which will likely outline specific targets and strategies for achieving the long-term vision. We encourage readers to share their thoughts and perspectives on India’s development journey in the comments below.