The Roadmap: India to Become a Global Economic Power by 2047

The Roadmap: India to Become a Global Economic Power by 2047

Anvesha Sharma

Kshitiz Negi

Nishant Chaturvedi

Abstract

This paper focuses on the theme of India’s path toward becoming a global economic power by 2047. It critically analyses the various sectors of the economy that could potentially accelerate India’s growth. The paper takes into account the background of diverse sectors such as power and the financial system, which are central to India’s development.The primary objective of this paper is to shed light on the challenges hindering the nation’s growth and explore possible solutions to address them. We will examine several key topics, including employment, demographics, defence , science and technology, universal fraternity, India’s high moral standards, and cultural preservation. Additionally, we will discuss how to strike a balance between development and sustainability.By examining these areas, we aim to provide a comprehensive overview and valuable insights into the key components that will shape India’s future as a global economic powerhouse.

Keywords

Economy, defence, science&tech, population, culture, sustainability

 

Introduction

In ancient times, India was renowned worldwide as an agrarian economy, but this was only a fraction of what the country had to offer. India served as a pivotal hub for trade and exports across the Asian, European, and African continents, contributing nearly 33% of the world’s GDP at its zenith. Beyond the export of spices, textiles, and precious stones to Rome, Greece, and China during the Mauryan Era, India boasted a rich heritage of science, art, and literature. The Gupta Empire, often referred to as the “Golden Age” of India, exemplified the country’s cultural and intellectual flourishing, further solidifying its role as a key player in the Silk Route trade.From the 13th century to the mid-18th century, India experienced the rise and fall of numerous empires and sultanates. However, one constant throughout this period was its economic growth and geopolitical relations with neighbouring regions. Urbanisation

occurred at a remarkable pace, giving rise to major trade centres such as Delhi, Lahore, and Agra, where artisanship and handicrafts thrived. During the Mughal Empire, India emerged as a leading exporter of cash crops such as indigo, tobacco, and cotton. The textile industry, particularly silk and muslin, established a significant presence in Europe and Southeast Asia, fostering robust trade relations with the Middle East, Europe, and Asia through the export of goods like spices, textiles, and jewels. This period also saw substantial infrastructure development to facilitate trade connectivity.However, during the colonial period, India Transitioned from a prosperous economy to one that was heavily exploited, the British colonial rulers extracted raw materials from India at significantly undervalued prices, which they transported to their homeland, where industrialisation had just begun. These raw materials were then converted into finished goods and sold back to India at inflated prices, resulting in an economic recession for the country. Post-independence, India adopted a closed economy model aimed at achieving self-reliance and strengthening its market to compete with global corporations and economies. The introduction of the Rao-Manmohan model in 1991, commonly known as the LPG Policy (Liberalisation, Privatisation, and Globalisation), marked a significant turning point as India began to open its doors to globalisation. Nearly 32 years after these economic reforms, the current Prime Minister, Narendra Damodar Das Modi, launched the “Viksit Bharat @2047″ initiative on December 11, 2023, with the vision of transforming India into a global economic power by 2047. This paper aims to provide a roadmap toward achieving this ambitious goal, aligned with the aforementioned objectives.

Exploring the Importance of Gross Fixed Capital Formation [ GFCF] in Shaping India’s Economic Future:

When we talk about GFCF it can easily be understand by the total fixed capital added to the economy within a fiscal year.
For instance let there be a company X it owns 10 machinery producing 100 units of goods each worth ₹1 every day . So, at the end of a day Company X is producing 1000 units of goods worth ₹1000 . Let this year Company X buys a machinery which produces 200 units a day. Now there daily output has increased to 1200 units of goods and value has increased by
₹200 . So, the increase of one machinery by X is contribution to GFCF. Now like this all the fixed assets by private entities and companies and Government purchased and used in a fiscal year makes the GFCF of a nation.

As per the Indus Valley Report India’s ranking in terms of GDP is 5th in the world and in term of Per Capita GDP it is 140th.

When we talk about GDP decomposition India ‘s GDP mainly consists of PFCE (Private Final Consumption Expenditure) at 60% of GDP and GFCE (Government Final Consumption Expenditure) at 11% of GDP.
But when we talk about GFCF it only constitutes of 29% and its a big issue.

As high GFCF’s merits can be seen as :

◦ More Fixed Capital means more production and it also lowers the cost of production . This means there will be higher availability of domestic produce goods.
◦ As now we have higher availability of domestic produce goods , it would be easy to export more of goods and import less of them. A step towards self reliant economy.
◦ At last if one industry increases it production other related industries would also grow. For example, if a chocolate factory increases it production than it would also
benefit the industries supplying them with milk, beans and sugar. So they would also generate employment and when there will be high employment it would in turn lead to high PCI (Per Capita Income).
To understand its importance we can take example of China a neighbouring Economic superpower . China has a GFCF component of 43% of its GDP.

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Source: IMF& World bank
As shown in the above graph it is easy to understand the reason for China ‘s development. On the one hand China’s Capital Formation Investment is more than double of India’s total GDP while on the other hand India ‘s Capital Formation is roughly 1/7 th of China’s Capital Formation.

MSMEs: The Backbone of India’s Economy Struggling with Debt

MSME i.e. Micro Small Medium Enterprises are generally known as the backbone of a nation ‘s economy . And this statement is true with no doubt as 29% of GDP and 50% of exports are the contribution of Indian MSME and Startups.
But little do we know that these Corporates, MSME and Startups are facing a debt crisis.

Source: RBI

It all started during the bad loan crisis under which many reputed banks went bankrupt, the NPAs (Non Performing Assets) shot up from 5% (in 2015) to 15% (in 2018). So it became clear that these banks need more tight scrutinies and overseeing so there were numerous steps taken one of them being The Insolvency and Bankruptcy Code in 2016 when seven acts that were there in the cases of bankruptcy were removed and replaced with a single act IBC 2016 . It made the process easier and also saved a lot of money of creditors, shareholders and employees. The rise of the NPAs made Central Bank suspicious and they went onto check the reasons behind it and therefore they founded that the guidline that tells that for each NPA in the bank , it needs to hold certain percentage of that NPA debt with them that they can’t give out for more loans.

Source-RBI

Example – Let that percentage be 10%

Bank X gives loan of ₹10 Crores to Y . Later on Y doesn’t pay EMI for 3 months and becomes a NPA . So now Bank X can’t give out loans of worth 10% of ₹10 Crores i.e. ₹1 crores to anybody and should keep that amount with them liquid.

Under the central bank scrutiny it was found that many banks hide their NPAs for the sake of intrests which led to the immense growth in NPAs.

Now many MSMEs and startups are unable to get credit easily from bank for their business due to the past disaster. This has created a credit gap for these sectors.

In the above example we need to see that :

◦ Company X buys Raw material from supplier to make finish goods but to buy that X needs to pay upfront amount ₹1 Lakh.
◦ It process the goods and sell the finish products to retailer worth ₹1.5Lakhs but they wont pay the amount until 60 Days .
◦ Now, X which has a profit of ₹50,000 on books but doesn’t has the cash .

◦ So X wont be able to buy Raw Materials again from the supplier next month . Therefore it creates a cash flow deficit pf ₹1,00,000 . And he is unable to take credit because he does’nt have any collateral so it also creates a Credit Gap of ₹1,00,000 .

India’s Path to Economic Power: What We Can Learn from Germany’s Recovery

India talks about beating Germany and become the third largest economy in the world but is it that easy ?

Lets understand how can we adopt certain policies of German Republic and what are the lessons that can help us in this path of becoming a Global Economic Power.
After The World War II , Nazi surrender to Allies and Germany was partitioned , Wall of Berlin was made . After the war Germany was in a state of economic catastrophe. So how did Germany grew to this economic power making it a third largest economy in the world with about $55000 Per Capita Income . To rebuild its economy it primarily needed new businesses and good exports . It was time when concept of Mittelstand companies was formed which were basically MSMEs of the economy . But unlike Indian MSMEs these Mittelstand companies primarily focused on the hyper speciality of their goods and services. During the 20th Century USA made it compulsory for Germany to mark their goods with “Made In Germany” tag so that people would assume that these low quality of goods are made in Germany and won’t buy it. As a result of the sanction Germany labelled their products but on the contrary they began to be known for their exquisite services and top notch quality products. Later, Germany started to charge premium for their labels and customers were happy to pay that as the quality of the products were superb.
Similarly Indian MSMEs should also learn from this example of not diversifying into multiple products and services with average quality but instead should focus on the hyper speciality of anyone of them .
Mittelstand Companies are the world market leaders of their segement and the biggest pillar of the German Economy . Unlike India most of the MSMEs Corporates located in Delhi, Mumbai, Chennai , Bangalore and Hyderabad (Only big metropolitan cuties) , In Germany these Mittlestand Companies are located all over the country instead of major German cities like Berlin, Hamburg and Munich. So , this helps to generate employment all over the nation instead of only in some metropolitan cities.
India should learn from this case of German Mittlestand companies and adopt their positives to attain a status of global economic power by 2047.

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Importance of Government Policies :

Government policies play a vital role around development . For India to go from developing country to a developed one it would need favourable Government policies that would protect and prosper startups and MSMEs in India.

For instance programs such as Kurzabeit Scheme in Germany could be a perfect example of such. Under this scheme employees and employers both deposit a certain percentage of salary of the employee in the scheme under the name of the employee. This scheme comes into action in the case of recession .

Source- IMF

For Example:

Company A manufacturing Cars in Germany , is in the industry for approximately 100 years and has very nice cashflow and has 1000 employees.
Now, there is recession in the nation and demand of the cars fall by 50% and it becomes difficult to give salary to all the people due to the cash crunch. Now , if this was any other capitalist nation they would just reduce the workforce by 30 – 40% to meet the demands and salaries . But, in Germany there is Kurzabeit Scheme , now the Company will pay the 1000 employees for 20 hours(50%) a week ( assuming they worked for 40 hours a week before recession ) and the Government will pay the 60% of the remaining 50% of wage loss to the

employees. So, at the end as both employees and employer were depositing amount in the scheme , Government didn’t suffer any losses from the budget , employers didn’t need to terminate any employee and employees were able to secure 70% of their wages in the season of recession. Also, when the market changes from recession and becomes normal , German companies can go onto produce goods and services according to their orignal demands while on contrary other nations where they fired the workforce goes onto recruit new individuals , train them and spend money on this recruitment process which leads to delays in production.

Source- IMF

In India , above mentioned Government policies could be a benchmark as this would lead to job security, more employment and companies would also feel financially secure when government have their back.

Prioritising Qualification Over Traditional Education: A Modern Perspective

In India literacy rate is approximately 74% which is quite a astonishing figure.But, what if we tell you employment rate in India is only about 46% . The main reason behind this is that people in India prefer education over qualification.
A person with multiple degrees may not be qualified to be a CEO of a MNC , but on the other hand a high school graduate college dropout who is the owner of that MNC is qualified to run its overseas operations.
This example may sound extraordinary or like exceptions but in current times it is becoming reality for India and many other developing nations . The estimated budget for education in India for 2024-25 is 0.38% of the country’s gross domestic product (GDP). This is well below the 6% of GDP that the National Education Policy (NEP) 2020 recommends.
For now lets take an example of Engineers ,

In most colleges During the last or fourth year of their graduation , a engineering student needs to prepare the thesis and project on a topic from a subject out of the 40+ subjects that they have studied in the span of last three years under a project mentor/professor . But the challenge here is this project thesis needs to have real life experiences like site visits, interviews with some professionals etc. But the students are unable to do so because of assignment pressure, attendance maintenance pressure etc. And in the end they just submit the report or project with whatever they find on internet or some books.
While on the other hand , in Germany same fourth year engineering student goes onto do his project with some reputed company like Audi . There he learns a lot about automobile sector without any assignment or attendance compulsion etc. He acquires skills in the real world while a Indian student does not get any real world knowledge.
Similarly after graduation , Indian student may get placed in a big MNC but would need to go through a training phase because he was not employable at the time of hiring. On contrary a German student is hired by the Audi itself and after graduation becomes the part of efficient workforce of the nation.
These differences in education sector may hinder the growth of India towards a Global Economic Superpower.

Why India is Poised to Become the Next Manufacturing Powerhouse:

Its been a decade since Prime Minister of India announced “Make in India” initiative .The intent of this initiative was to increase our exports with reduction in imports and positive trade balance in BoP of the nation.

As stated in the World Bank’s reports India’s exports have grown intensively with $317.45 Billions to $776.68 Billions from 2014 to 2023 . This growth is quite astonishing for a developing nation and now it looks like the initiative is a success but reality is different.
According to RBI’s Trade and Payment Deficit data, Current Account Balance has been reduced from , – $32.4 Billions to – $54.5 Billions from 2014 to 2023. This means that exports of India are growing with a great rate but the imports are also increasing with much higher rate than exports growth rate .
But we still are importing more than exporting and it can lead to three major issues in the economy.
– As India, imports more of the goods and services from the rest of the world , it will finally lead to the shitting down of domestic industries which will directly lead to the job loss of workforce related to that industry , which in turn results in higher unemployment.
– Second, it can lead to domestic currency depreciation. For Example : India imports goods worth $100 Billions and exports goods worth only $90 Billions, this lead to Balance of Trade deficit of $10 Billions . Now this $Billions could be recovered by selling ‘ ₹ ‘ in the international market for ‘$ ‘ . So ‘ ₹ ‘ will depreciate from ₹80/$1 to ₹100/$1. This would lead to inflation in India and will be a big disadvantage for the growth of the nation.
– Lastly , this Current Account Deficit leads to the dent in the economics of the nation which in turn may lead to more loans and higher Fiscal Deficit for India with higher interest payments in upcoming years.

These hindrances can be avoided if India increase the in house production of the goods and services for which needs to promote manufacturing industry in the nation but the individual entities wanting to setup industry in the country faces many problem which in turn results in the delay or becomes a inconceivable thought in some cases.
– Challenges industry faces due to Red Tapism and bureaucracy. Even Shashi Tharoor
( Former Union Minister for HRD and External Affairs) said that “According to Niti Aayog, it takes a minimum of 120 days to set up a business in India, but in Kerala it takes 248 days.

How will our state develop with such an attitude? “It is time we remove red tapism and impart new training to the bureaucracy. We need to think about this,” he said.
– Environment Clearances , it is a massive issue for majority of individuals who want to setup a factory in India. Nitin Gadkari ( Union Minister for Road Transports and Highways) said “We need to assess what the the country is paying due to stay orders from the judiciary in infrastructure projects. What is the cost due to delay in land acquisition and environment approvals? I am sure the cost is Rs 1 lakh crore,” Gadkari said in a discussion. “We need to change the atmosphere and improve decision-making process.”
– Land Acquisition , many individuals face the issue to acquire land for the industry due to multiple clearances and legislative technicalities.
– After all these things if a industry is set up, it faces a problem to find skill labour force which makes up a big issue.
In 2015 , PMOI Narendra Modi introduced Skill India initiative to empower youth with skills . Aim was to empower 400 million youth with skills by 2022.

Source : SKILL INDIA REPORT 2024

But, it was a disaster as stated in article of Financial Express, “Only 5% of India’s workforce has received formal skill training as against 80% and 96% in countries like Japan and South

Korea.” Above mentioned report’s diagram tells us that out of 100% above mentioned percentages of respective field of graduation are unemployed.
Still , India tries to cope with such a huge population and continue towards the goal of empowering youths.
Its true that in today’s times India is producing everything from iPhones to semiconductors but quality is still a question for many. India’s transition to manufacturing powerhouse can be completed if it focuses on giving top notch facilities, world class labour and easy procedures for bureaucratic work

India’s Rise as a Global Leader in Technology and Innovation

Advancements in technology have been the principal foundation for the development of nations and societies. Throughout ancient and medieval times, India’s continuous achievements in science have enabled the country to reach remarkable heights. In the present scenario, India has achieved a significant milestone in the Global Innovation Index (GII) 2024, securing the 39th position among 133 global economies. The nation is demonstrating exceptional proficiency in advanced technologies, including 5G, artificial intelligence, blockchain, augmented and virtual reality, machine learning, robotics, and space exploration.
India ranks third globally as a premier investment destination for technology transactions. The country has witnessed a notable increase in investments in this sector, largely due to the influx of multinational corporations establishing research and development centres within its borders. Additionally, India is recognised as a leading nation in space research and is poised to further advance its science and technology sector through strategic collaborations with various countries. Currently, India maintains active bilateral science and technology cooperation programs with over 83 nations.

Navigating the Future: Key Areas for India’s Tech Development:

To successfully advance India’s objectives in science and technology, several key areas must be prioritised. For instance, transitioning from traditional engines to electric vehicles (EVs) powered by renewable energy sources is crucial. The Government of India offers various financial incentives to make electric vehicles more affordable, with the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME) scheme serving as the flagship initiative for promoting EVs. In 2023, electric vehicle sales in India saw a significant increase, indicating that while the sector is still in its early stages, it is steadily gaining traction.

Source: Indian Patent Office

Technological advancements have also been implemented in the agriculture sector. The government has introduced various digital initiatives aimed at enhancing agricultural practices, such as the Agricultural Technology Management Agency (ATMA), the National Mission for Sustainable Agriculture (NMSA), the Electronic National Agriculture Market (E- NAM), and Soil Health Management (SHM). However, technological advancement has been slow, primarily due to high illiteracy rates and the significant costs associated with technology adoption.

In the healthcare sector, India has established itself as a leader in leveraging technology to improve citizens’ lives. Initiatives like the Ayushmann Bharat Digital Mission, CoWIN App, Aarogya Setu, e-Sanjeevani, and e-Hospital have expanded healthcare access across the country. To foster national growth, it is essential to prioritise enhancing infrastructure, promoting interoperability, and installing advanced technology in hospitals, while also emphasising the development of remote healthcare systems to ensure access to services for all.

Another important concept is the patent filling.The Patent Acts 1970 and the Patent Rules of 2003 are the laws that regulate and govern the filing of a Patent in India. These rules say that the inventor, someone they give rights to, or their legal rep can apply for a patent. This is done at the Indian Patent Office that covers the area where the inventor is based.It means that if one has created something useful then one shall file a patent to legally protect it in India. Mirroring global trends, in FY2023, India witnessed 83,000 patents being filed, marking an annual growth rate of 24.6%, the highest in the last two decades, as per Patenting Trends report released by Nasscom on Friday.Amongst the top application areas, Healthcare related patents, primarily around medical imaging, diagnosing, report generation and testing saw the maximum applications, followed by Automation/Software Development and Retail/E-commerce. Artificial Intelligence saw maximum patents filed in areas of image processing, Natural Language Processing, and Predictive modelling, while Gen AI, Medical Data Processing and Cognitive computing are the key emerging areas.Over
the last two years, the patent filing process in India has undergone significant improvement. Yet, the country’s share in patents filed globally was just above 2%, implying the need for more focused initiatives in this direction,

The Inter-connection of Culture, Morality and Development in India:

When discussing development, we cannot overlook the importance of high morality and cultural preservation within society. Indian civilisation, with its rich tapestry of diverse cultures and values, has earned the title of “Vishwa Guru Bharat.” As a pluralistic and multicultural society, India is home to numerous faiths and belief systems that guide individuals’ lives. Broadly speaking, Indian culture does not view the individual and society as antagonistic; rather, it emphasises their interconnectedness.
Cultural heritage encompasses both tangible elements, such as historical monuments, artifacts, and landscapes, and intangible aspects like language, customs, and traditional knowledge. Preserving these invaluable resources maintains a vital link to our past. However, efforts to conserve and interpret cultural artifacts must keep pace with the pressures of modernisation.However, India faces several significant challenges in its efforts to preserve its rich heritage. One of the foremost issues is the widespread lack of respect among visitors to heritage sites, leading to vandalism and defacement. Many visitors may not fully appreciate the historical and cultural significance of these sites, resulting in careless behaviour that damages property.
Moreover, the absence of formal institutions dedicated to the repair and maintenance of heritage sites exacerbates the problem. While some organisations and NGOs work towards conservation, there is a lack of structured, government-supported initiatives specifically

focused on preserving these invaluable sites. This gap often results in delays in restoration efforts and inadequate management of the sites.
Funding is another critical obstacle. Many heritage sites require substantial financial investment for proper upkeep and restoration, but budgetary constraints often limit the resources allocated for their preservation. Without adequate funding, essential maintenance, and repair work cannot be performed, leading to further degradation of these cultural treasures.
Environmental pollution presents a serious threat as well. The impact of industrial activities, urban development, and poor waste management has been detrimental to several iconic monuments. For example, the Taj Mahal has suffered considerable damage due to sulfur dioxide emissions from the oil refinery in Mathura, leading to discoloration and structural issues. Other monuments have similarly been affected by air and water pollution, which can accelerate deterioration.
Additionally, a lack of public awareness about the importance of cultural heritage and its preservation has contributed to these challenges. Many people do not understand the significance of these sites, viewing them merely as tourist attractions rather than as integral parts of India’s history and identity. Educational initiatives aimed at fostering a sense of responsibility and pride in one’s heritage are crucial in addressing this issue.
Recent initiatives, such as the ‘Adopt a Heritage’ project, aim to enhance heritage sites and monuments by making them more tourist-friendly and maximising their tourism potential. This initiative encourages active participation from individuals and organisations to become “Monument Mitra” through the Vision Bidding concept. Similarly, the PM Vishwakarma Yojana seeks to create a supportive ecosystem for traditional artisans, enabling them to thrive in their crafts and contribute to the preservation of India’s rich cultural heritage.
Therefore, it is essential to safeguard India from threats to its cultural heritage and moral values. India is renowned for its high moral principles, as reflected in ancient texts like the Vedas and various holy scriptures, which outline the moral duties of individuals necessary for leading a fulfilling life. As we move forward in our pursuit of growth, it is crucial to uphold these values.

Approaches to Sustainable Development in India:

Sustainable livelihoods represent an approach to eradicating poverty by applying environmental, economic, and social equity principles to the access and consumption of resources. A livelihood is considered sustainable if it can withstand and recover from stresses and shocks. To understand the importance of sustainable development in practical terms, one need only observe global trends: on average, people are living longer and earning higher

incomes. However, much of this development is unsustainable, leading to both resource depletion and climate change.
With increasing awareness of climate change and environmental degradation—and their profound impacts if left unaddressed—numerous countries have embraced the 17 Sustainable Development Goals (SDGs) adopted by the United Nations in 2015, committing to safeguarding the planet. In India, NITI Aayog serves as the nodal institution for achieving these SDGs, having developed a comprehensive monitoring framework that covers all 17 goals.
India’s average temperature has risen by approximately 0.7°C between 1901 and 2018, largely due to greenhouse gas (GHG) emissions driving climate change. In 2019, India was ranked as the seventh most affected country by extreme weather events related to climate change, with 2,267 fatalities and economic losses totalling approximately 66,182 million USD (PPP). These extreme weather events have rendered 17 out of 20 people in India vulnerable to hydrological and meteorological disasters such as floods, droughts, and cyclones.
In response, the Government of India has implemented significant measures to ensure that development is accompanied by sustainability. One key initiative is NITI Aayog’s Methanol Economy, which aims to reduce India’s oil import expenditures and GHG emissions by converting coal reserves and municipal solid waste into methanol. Additionally, the E-Amrit portal, developed and hosted by NITI Aayog, seeks to raise awareness about electric vehicles (EVs) and inform consumers about the benefits of transitioning to electric mobility.
As we recognise, growth comes with responsibilities that demand a careful balance between environmental preservation and human needs. To achieve this balance, several approaches can be implemented. Increasing renewable power generation capacity is crucial for reducing reliance on fossil fuels and minimising greenhouse gas emissions. Additionally, enhancing forest and tree cover can create vital carbon sinks, helping to absorb atmospheric CO2 and combat climate change. Establishing robust financing mechanisms is also essential to support green innovations and encourage sustainable practices across various sectors.

Moreover, fostering community engagement and awareness about environmental issues can lead to more responsible consumption and conservation efforts. By prioritising these strategies, we not only protect our ecosystems but also promote economic resilience and social equity. Ultimately, integrating environmental sustainability into our growth models is imperative for ensuring a healthier planet and improving the quality of life for present and future generations. This holistic approach is essential for achieving sustainable development.

India as an advocate of universal brotherhood

The emergence of new conflicts poses significant threats to the socio-economic stability of nations. These challenges can only be effectively addressed through coordinated global action and enhanced people-to-people engagement.The territorial integrity and protection of national boundaries from foreign aggression is the core interest of a nation. The idea of Vasudhaiva Kutumbaka (the world is one family), a Sanskrit phrase from ancient Indian scriptures, embodies this ethos.
To sustain country’s growth it is important to have good relations with fellow nations in order to attract foreign direct investment, transfer of technology, bilateral trade etc.This global diplomatic presence also serves the interests of the India diaspora in the times of crisis.Today we see hate speech and violence directed towards minorities hence it is important to promote brotherhood to break down the very structures that keep racism rooted in us.Due to the advent of globalisation we have seen exchange of goods, technology, ideas, people which has significantly promoted universal inter-dependence.India’s foreign policy seeks the transformation of our economy and society while promoting our values of pluralism, democracy and secularism.India has been actively making efforts to promote universal brotherhood on the global stage. One prominent example is its encouragement of cultural diplomacy, particularly through the promotion of yoga. India has successfully advocated for the international recognition of yoga, culminating in the establishment of International Yoga Day, which is celebrated worldwide on June 21st. This initiative not only highlights India’s rich cultural heritage but also fosters a sense of global unity and well-being. Additionally, India showcases its diverse culture through various festivals and events abroad, further strengthening its ties with the global community. India also believes in resolving tensions with its neighbours through diplomatic dialogue and constructive engagement, rather than through confrontation or aggression. India’s commitment to peace is evident in its active participation in UN peacekeeping efforts, as well as its support for multilateral institutions that foster international cooperation and conflict resolution.For example, even after multiple disagreements and conflicts existing between the two countries, during the visit of the Chinese President Xi Ping to India in September, 2014, India extended its hand of friendship and conveyed a clear message that the two countries must work together so that the 21st century could belong to Asia.
Diplomacy For Development is another strategy which has led to Intensified engagements with foreign partners which have brought visible benefits through enhanced foreign investment and technology tie-ups, leading to the setting up of factories and creation of jobs. It has been possible to forge foreign collaborations for several flagship schemes such as Skill India, Smart Cities, Make in India, Digital India for creating a new India by 2022. Diplomatic outreach has resulted in commitments of substantial Foreign Direct Investment(FDI) from foreign Partners.Thus, we can say that India has made significant efforts in the past, and these

efforts are now evident in the growing popularity and respect the nation enjoys worldwide. Through its commitment to peace, cultural diplomacy, and sustainable development, India has increasingly become a global leader, fostering positive international relations and enhancing its stature on the world stage.However, India can further amplify its impact by continuing to foster global brotherhood through liberal trade policies, a non-violent approach to resolving international conflicts, respecting the cultures of other nations, and promoting its own rich cultural heritage.

Conclusion

The exploration of these various themes reveals a comprehensive picture of India’s evolving economic landscape, from the role of Gross Fixed Capital Formation (GFCF) in driving growth to the challenges and opportunities faced by MSMEs, and from India’s potential as a manufacturing powerhouse to its ongoing transformation in technology and innovation.
Here’s a synthesis of the key takeaways:

India’s economic future depends on a combination of factors. Gross Fixed Capital Formation (GFCF), which refers to investments in infrastructure and industrial assets, plays a key role in supporting long-term growth. However, India’s small and medium businesses (MSMEs), which are vital to the economy, still face challenges like high debt and limited access to finance. To help these businesses thrive, the government needs to improve policies and provide better financial support.Government policies are also crucial for boosting growth in key areas like manufacturing, technology, and innovation. India can learn from countries like Germany, which successfully rebuilt its economy after a crisis, and apply similar strategies to encourage investment and strengthen industries.Technology and innovation are already major strengths for India, especially in areas like software, AI, and space research. Continued investment in research and development, as well as expanding digital infrastructure, will help keep India at the forefront of technological progress.At the same time, India’s growth must also consider cultural values, ethics, and sustainability. Economic development should go hand in hand with social and environmental responsibility to ensure long-term prosperity for all.Lastly, while India aims to become a global manufacturing leader, it must do so in a way that is environmentally sustainable. Balancing economic growth with care for the planet will help ensure lasting success.

In short, India’s future relies on a mix of smart investments, good government policies, technological innovation, and sustainable practices. By focusing on these areas, India can grow into a powerful and responsible economic force in the coming years.

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