India's 2047 Development Goal: Achievable with Focus on Manufacturing & Services - Deloitte

New Delhi, Jan 31 (PTI) The target of India achieving the status of a developed nation, or Viksit Bharat by 2047, seems "achievable", consultancy firm Deloitte India said on Friday advocating for a sharp focus on manufacturing and services, and measures to rein in inflation.

The Economic Survey 2024-25, tabled in Parliament on Friday, said India needs to grow by 8 per cent on an average for at least a decade to become a developed nation by 2047.

"According to our calculation, we need 7 per cent growth at least to get to USD 30 trillion by 2047. That's a math we did assuming a 4 per cent inflation rate and about one and a half per cent depreciation.

"I think the momentum that India needs is in the services sector and the manufacturing sector. Because that is where the growth potential lies. And not in just every sector, but in the high value added segments," said Rumki Majumdar, Economist, Deloitte India.

In an interview with PTI, she said 8 per cent could be challenging for some years especially when the geopolitical landscape is uncertain, but once momentum is achieved, it may actually be possible to climb much higher.

While there's a significant ramp-up in manufacturing and services, "servicification of manufacturing" is a completely untapped region, which, if utilised rightly in the next 4-5 years, will result in "exponential impact", Majumdar pointed out.

This, along with ensuring that inflation is controlled and within the Reserve Bank of India's target, will make the goal achievable, she added.

"And I think then an average of 8 per cent will be relatively easier. So, it's an achievable target," she said.

The economic survey talks about developing the manufacturing sector and investing in emerging technologies such as AI, robotics, and biotechnology.

India will also need to create 78.5 lakh new non-farm jobs annually till 2030, achieve 100 per cent literacy, develop the quality of our education institutions, and develop high-quality, future-ready infrastructure at scale and speed, the pre-budget document stated.

Further, Majumdar said decoupling from China on the manufacturing front may not be a feasible choice for India right now.

"The supply chains are way more integrated. And the position where China is right now, it will take some time for India to get there. But there are certain opportunities which are arising here. The government wants to be self-reliant. That is why it has identified some core sectors--semiconductors, defence, chemicals, or pharmaceuticals. These are also the sectors where we have high dependence on China.

"As we accelerate our efforts towards self-sustainability, I think our dependence in certain sectors will probably come down on China, but we have to accept the fact that key minerals are possessed by China," she said.