The Journey Towards a Developed India: FM Sitharaman
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Synopsis
Union Finance Minister Nirmala Sitharaman emphasized India's commitment to becoming a 'Viksit Bharat' by 2047 during her address at Stanford University. She outlined the importance of inclusive growth, digital infrastructure, and support for small enterprises, highlighting the significance of collective efforts in achieving this national mission.
Key Takeaways
- Viksit Bharat is a collective national mission.
- India's economy has risen to the fifth-largest globally.
- Digital Public Infrastructure (DPI) has transformed banking and vaccine distribution.
- Support for small and medium enterprises is crucial for growth.
- Long-term goals must align with current realities.
New Delhi, April 22 (NationPress) India's path to achieving a Viksit Bharat by 2047 is not just a dream but a collective national initiative driven by a vision for inclusive, sustainable, and innovation-driven growth, stated Union Finance Minister Nirmala Sitharaman.
In her address at the Hoover Institution at Stanford University, USA, the Finance Minister highlighted India's ascent from the world's tenth-largest economy to the fifth-largest, a clear indication of our growing strength and global significance.
“Despite the shock from the pandemic and a banking crisis, our advancements over the last decade, rooted in robust macroeconomic fundamentals and consistent reforms, instill us with confidence and direction for the future,” she conveyed during her keynote speech, titled ‘Laying the foundations for a developed India #ViksitBharat by 2047’.
FM Sitharaman pointed out that some initiatives in India are particularly commendable, such as the success of Digital Public Infrastructure (DPI).
“Over a billion digital identities have been established through DPI. These identities enabled the creation of bank accounts, and during the Covid-19 pandemic, funds were transferred by the government with a single click. DPI was also crucial for vaccine administration during the pandemic,” she remarked during her address.
“In my discussions with the G20, World Bank, or the IMF, this remarkable achievement of India is consistently praised,” she added.
The Union Minister emphasized that maintaining India's growth momentum over the next two decades requires a novel approach based on bold reforms, enhanced domestic capacities, renewed institutional collaborations, and adaptive strategies tailored for the changing global landscape.
“The last two Union Budgets have established the framework for this transformation, featuring a clear multi-sectoral policy agenda,” she noted.
As we lay the groundwork for a developed India, we must remain committed to long-term objectives while being aware of current realities, she stressed.
The shifting global order presents both challenges and opportunities. We need to be ready to confront the former while capitalizing on the latter.
“A Viksit Bharat will be shaped not just by the government but through the united efforts of every citizen. This vision urges us to think boldly, act inclusively, and remain resilient and adaptable,” stated the Finance Minister.
A dynamic and robust network of small and medium enterprises (SMEs) is crucial for the growth of domestic manufacturing.
“The government has launched several initiatives to assist SMEs, including improving access to credit, redefining size thresholds, ensuring timely payments from large buyers, and reducing compliance burdens,” the Minister remarked.
The Open Network for Digital Commerce, initiated in April 2022, has successfully onboarded over 764,000 vendors across 616 cities.
“Our next priority is to minimize regulatory barriers, digitize approvals, and integrate SMEs into global value chains. Special support for women-led and rural enterprises will boost economic opportunities and promote more inclusive growth,” FM Sitharaman added.
Over the past decade, a significant emphasis on infrastructure development has established a solid foundation for manufacturing-led growth by enhancing investor confidence, she stated.
This has been facilitated by a more than four-fold increase in the Union government’s capital expenditure (Capex) between 2017-18 and the 2025-26 Budget.
“Over the past decade, we have implemented structural reforms, streamlining over 20,000 compliance requirements, decriminalizing business laws, and digitizing public services to lessen friction. Our experience with the Business Reform Action Plan across various state governments has shown that deregulation acts as a powerful catalyst for industrial growth,” the Finance Minister further explained.
A report by Indiaspora and BCG reveals that Indian first-generation immigrants established 72 unicorns from 2018 to 2023. These unicorns were valued at a minimum of USD 195 billion and employed nearly 55,000 individuals.
More than 65 percent of Global Capability Centres (GCC) in India are headquartered in the US. These GCCs provide high-value-added, customized services in areas such as R&D, management consulting, and auditing.
“While the US has developed into a mature startup hub over the last 50-60 years, India's startup journey is still in its early stages. Throughout the past decade, the government has focused on lowering the cost of entrepreneurial risk-taking by eliminating regulatory and infrastructural obstacles,” she emphasized.
