India’s economic evolution has been guided by a strategic vision complemented by persistence, careful execution, and a long-term outlook. As highlighted by Goldman Sachs, continuous investment in infrastructure and adherence to fiscal discipline are propelling India towards sustainable growth. Similarly, Ranen Banerjee from PwC India stated that Budget 2024 lays the foundation for long-term growth by balancing investments and fiscal responsibility.

The 2024 budget is part of an ongoing economic framework, contributing steadily to the broader vision of Viksit Bharat 2047, while building on past initiatives aimed at sustainable, long-term growth, fortifying India’s ambitions to become a developed nation by 2047. Infrastructure development, inclusive growth, and fiscal prudence have been major components of these budgets, acting as a well-designed blueprint to ensure that every economic move is a step toward a brighter future for the country. 

Since the introduction of the Goods and Services Tax (GST) in 2017, India has seen significant reforms that have streamlined compliance and improved efficiency across sectors. These reforms resulted in a record ₹18 lakh crore in GST collections for FY 2022-23, reflecting a 22% year-on-year growth. This boost in government revenue has provided the fiscal space necessary for investments in critical infrastructure, driving further economic development.

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In addition to tax reforms, initiatives like Make in India and the Production-Linked Incentive (PLI) scheme have helped India establish itself as a growing hub for global manufacturing. Major global players like Apple and Mercedes-Benz have ramped up production in India, while the semiconductor industry is witnessing significant momentum. Micron Technology has announced a $2.75 billion investment in a semiconductor assembly and testing facility in Gujarat, supported by $1.95 billion in government aid. Likewise, Vedanta-Foxconn and IGSS Ventures have committed to multi-billion-dollar chip manufacturing projects, reflecting India’s emerging role in the global semiconductor supply chain. 

The significant allocation of ₹11,11,111 crore in the 2024 budget for capital expenditure and the initiation of Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY) aim to further improve rural connectivity, reduce logistical challenges, and drive growth in rural areas. These investments are central to the broader vision of Viksit Bharat 2047, ensuring India remains resilient and competitive despite global economic uncertainties. These policies reflect the belief that infrastructure investment will stimulate GDP growth and are crucial for economic expansion and sustainability. 

As Mr. Deepak Parekh, chairman of HDFC Asset Management, HDFC Life Insurance Co., and HDFC Ergo General Insurance Co., has observed, “India has finally taken off after being on the runway for a long time.” This is reflected in the GDP growth rate of 6.6%, positioning India as the fastest-growing major economy. One of the key factors driving this growth has been the resurgence of private consumption, which now comprises 56% of GDP. After seven quarters of stagnation, private consumption surged by 7.4% in the first quarter of FY 2025, up from 4% in the previous quarter. This increase is largely driven by initiatives like the Pradhan Mantri Awas Yojana and enhanced access to credit for MSMEs, which have boosted consumer confidence. This uptick in consumer spending is creating demand across sectors, encouraging businesses to invest in expanding their production capacity. 

At the same time, the government’s substantial investments in infrastructure across transport, energy, and digital sectors are amplifying this growth. These improvements are not only boosting productivity but also reducing costs for businesses, creating a ripple effect that benefits industries like manufacturing, digital services, and exports. 

India’s merchandise exports, particularly in sectors such as electronics, chemicals, and textiles, have reached $447 billion in FY 2023-24, a record high, helping to bolster domestic production and create jobs. This cycle feeds back into rising incomes, further boosting private consumption. As a result, the interaction between private consumption, government spending, investment, and strong exports is driving India’s sustained economic momentum, creating a self-reinforcing cycle that positions the country for continued growth. 

The vision of Viksit Bharat 2047 sets a long-term goal for India to transform into a $30 trillion economy by its centenary year of independence. Achieving this ambitious target requires not just economic growth, but a holistic approach that focuses on building a sustainable, inclusive, and resilient economy. Central to this strategy is continued investment in infrastructure, particularly through initiatives like FAME, which promotes electric mobility to reduce emissions and modernize India’s transport sector. 

However, infrastructure alone won’t suffice. The government must equally prioritize healthcare and education, ensuring that India’s growing workforce is healthy, skilled, and productive. By improving the quality of life and expanding access to education and healthcare, India can enhance workforce efficiency, driving GDP growth without triggering inflation. 

As the country moves toward 2047, this integrated focus on infrastructure, human capital, and sustainability will propel India to achieve its economic ambitions while ensuring that growth benefits every citizen. By balancing these key components, India is not just chasing a GDP target but laying the foundation for a prosperous and equitable future.

The author of the article is a student from the PGPM Class of 2025, Great Lakes Institute of Management, Gurgaon. 

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