INDIA 2050

By the year 2050, India is projected

to become the third largest economy
in the world, behind china and the
United States.
Top 10 challenges for India to
achieve 2050 potential
 Improve governance
The problem
 Accountability of the politicians to the voter is weak
 Citizens do not organize to demand better services
 The role of state is blurred
Solution
 Public-private partnerships
 Decentralization
 Greater information
Raise basic educational achievement
The actual amount spent on education is low,
and its efficiency is weak. It is important that
India improves the amount and quantity of
money spent, and the quality is improved.
 Increase quality and quantity of
universities
 There is also significant need for better higher
education.
 For this India needs to have strong and
imaginative goals. Perhaps India can share
‘best practices’ with leading universities from
elsewhere around the world.
 Control inflation

Inflation rate should be around 4%-7% for

better development.
Introduce a credible fiscal policy
India should introduce a medium – term
strategy for fiscal policy, which reduces the
overall deficit to a certain level and sovereign
finances would not be once again on a
dangerous footing like 1980.
Liberalize financial markets
To meet its growth potential, India needs to
pursue financial reforms to channel saving
effectively into investment, meet funding
requirement for infrastructure and enhance
financial stability.
Increase trade with neighbors
India’s trade development with large
population neighbors have been restricted due
to territorial and border disputes. trade with
both Pakistan and Bangladesh is weak. India
should target a major increase in trade with
china, Pakistan and Bangladesh.
Increase agriculture productivity
 The quantity and quality of public investment
in agriculture needs to be substantially
increased.
 New technology needs to be harnessed to raise
yields.
 Agriculture needs to be deregulated to greater
commercialization and economies of scale.
 Improve infrastructure
The problems
 Financing
 Institutional constraints
 Regulatory issues
Solution
 To resolve financing issues India needs to develop its
capital market
 To encourage greater private sector participation
 The success stories in past few years needs to be
replicated.
Improve Environmental Quality
 Greater public awareness of the importance of
environmental sustainability
 Adopting new and cleaner technology,
especially in energy
India is expected to be the third
largest economy in the world
India is the only economy expected
to grow at rates significantly above
5% between 2005-2050
India has the 5th largest forex reserves
amongst developing countries
 Conclusion

As seen all the indicators discussed

in this presentation are showing
positive sign and are thus conducive
in making India the next superpower.
Thank you