Economy with a human touch: Modi 3.0

India is the fastest-growing large economy, expanding at a remarkable pace of over 7%. This momentum suggests that India is poised to outpace every other economy globally. Many herald this as India’s decade, potentially even India’s century. However, before declaring a victory of sorts, we must recognise and address multiple challenges. Let us delve into some key issues:

    1.    If India Grows, Will Bharat Too?
    2.    What Happens to Our Social Demographic Harmony?
    3.    What Happens to Rural India’s Speed of Progress?
    4.    What Happens to the Per Capita Income of Those at the Bottom of the Pyramid?
    5.    What is the True Meaning of Inclusive Growth?

India is growing, yet millions still struggle for two square meals a day. This harsh reality needs to be addressed comprehensively. The economic pace is astounding, but rural income growth is not keeping up. While the income of the average Indian is rising, so is the distress. The gap between job availability and job demand is a new phenomenon that the government seems unable to address adequately. While the Sensex is soaring, more than 600 million people remain uncertain about where their next meal will come from or how to manage the next day.

Key Challenges and Considerations

    1.    Urban-Rural Divide: As urban centres thrive, rural areas lag. Addressing this divide requires targeted investments in rural infrastructure, education, and healthcare to ensure that Bharat (rural India) grows alongside urban India. For instance, while Bengaluru shines as an IT hub, villages in nearby regions still lack basic amenities.
    2.    Social Demographic Harmony: Rapid economic growth often brings social tensions. Policies promoting social inclusion and equitable resource distribution are vital to maintaining demographic harmony. Ensuring that all communities benefit from economic progress can help foster a more cohesive society. The recent election results highlight the political narrative around inclusive growth. As “3 Idiots” famously said, “All is well,” but only if we truly work towards social harmony.
    3.    Rural Development: Accelerating rural development is crucial. This includes improving agricultural productivity, providing better market access, and enhancing rural employment opportunities. Government initiatives must focus on creating sustainable livelihoods in rural areas. Despite the rapid growth in cities, over 65% of India’s population still lives in rural areas, where development often lags.
    4.    Income Inequality: Tackling income inequality requires comprehensive strategies, including progressive taxation, social welfare programmes, and measures to boost wages for low-income workers. Ensuring a fair distribution of wealth can help reduce poverty and improve living standards for the poorest. While India’s GDP per capita has risen to around $2,500, it must exceed $21,664 by 2047 to be classified as a high-income country according to World Bank standards.
    5.    Inclusive Growth: True inclusive growth means everyone benefits from economic progress. This involves creating opportunities for all sections of society, especially the marginalised, and ensuring access to quality education, healthcare, and employment. Inclusive policies must aim to lift people out of poverty and provide equal opportunities for all. Quoting “Lagaan,” we need to remember that “Koi bhi desh perfect nahi hota, use perfect banana padta hai” (No country is perfect, we have to make it perfect).

Governance and Communication

The Bharatiya Janata Party (BJP) has been working diligently to ensure efficient governance. Several initiatives, such as the Direct Benefit Transfer (DBT) scheme, aim to reduce corruption and ensure that subsidies reach the intended beneficiaries. Programmes like Jan Dhan Yojana have brought millions into the banking system, promoting financial inclusion. Moreover, the government’s focus on digital India has streamlined processes, reducing bureaucratic red tape.

However, making policies work is one aspect; communicating them effectively to all citizens is equally crucial. The government needs to simplify the language and methods used to communicate its initiatives, ensuring that every citizen understands and benefits from them. For example, while Pradhan Mantri Awas Yojana (PMAY) aims to provide housing for all, awareness and understanding of how to avail the benefits should be widespread.

Additionally, establishing a national mechanism to take feedback from the common man is essential. Platforms where citizens can voice their concerns and suggestions can help the government fine-tune its policies and make necessary adjustments. This feedback loop will ensure that the governance remains people-centric, responsive, and effective.

Conclusion

India’s economic ascent is impressive, but it must be accompanied by efforts to uplift the underprivileged and bridge the urban-rural divide. The mantra “Sabka Saath, Sabka Vikas” needs to be more than just a slogan—it must be the guiding principle driving inclusive and sustainable growth for all. Addressing these challenges will ensure that India’s growth story is not just about numbers, but about improving the quality of life for every Indian, making the economy truly human-centric.

In recent elections, the people’s mandate was clear: growth must translate into tangible benefits for everyone, especially the last man in line. As we grow, we must ensure that every citizen can live happily every day, not just in anticipation of a better tomorrow. The Indian growth engine is massive, but it must tug along everyone, ensuring no one is left behind. This is not just a political or economic goal—it is a moral imperative. Let’s remember the famous dialogue from “Swades”: “Main nahi maanta humara desh duniya ka sabse mahaan desh hai. Lekin yeh zaroor maanta hoon ke hum mein kabliyat hai, taqat hai, apne desh ko mahaan banane ki” (I don’t believe our country is the greatest in the world, but I do believe we have the capability and strength to make it great).


Kishore Subramaniam is a financial expert and founder of Shree Consultants.