Economic Growth Rate in India – Sustainable or Not?

By Srividya Amanchi

Historically, the economic growth rate in India has been seen as a development paradox – abundant resources, but a slow growth rate, and pervasive poverty, sometimes referred to as a resource curse. 

But the country’s growth in the last few years has been rapid. In the 2021 Independence meet, Prime Minister, Narendra Modi announced Azadi ka Amrit Mahostav, the 10 policies shaping a sustainable India in the next two decades (20 years). These policies address crucial aspects of inclusive wealth, focusing on human and natural capital. Since inequality can hinder economic growth rate in India (or anywhere else), future progress should be driven by the Sustainable Development Goals SDGs. 

10 Policies that could lead to a Sustainable Economic Growth Rate in India:

1. Poshan Abhiyan

Poshan Abhiyaan, also called the National Nutritional Mission NNM, was launched to minimise undernutrition, stunting, anaemia, and low birth rate weight bodies. The mission leverages the technology and convergence between various modules and departments. It aims to reach the reduction level from 38.4% to 25% by 2022. The mission has set specific targets for States and Union Territories to meet annually.

• Reduce the undernutrition by 2% annually
• Anaemia by 3% annually
• Low birth weight by 2% annually
• Stunting by 2% annually

2. Pradhan Mantri Jan Arogya Yojana (PM-JAY)

The PM-JAY is the largest health assurance scheme, offering INR 5 lakh per family for secondary and tertiary care hospitalisation to over 12 crore poor and vulnerable families which comes to approximately 55 crore beneficiaries. PM-JAY aims to provide health care for rural and urban areas fully funded by the Government, and the cost of implementation is shared between Central and State governments. 

PM-JAY is the component of the Ayushman Bharat scheme, launched in 2017 to achieve the vision of Universal Health Coverage UHC. Ayushman Bharat has been initiated and designed to meet SDG India, with its underlining commitment to “leave no one behind” in the quest for a healthy economic growth rate in India.  It is an attempt to change the segmented and sectoral healthcare approach to a comprehensive need-oriented approach. By August 2020, PM-JAY issued 12.55 crore E-cards, 1.09 crore Hospital Admissions, and 22,796 Hospitals Empanelled. 

3. Jal Jeevan Mission (JJM)

The JJM is a flagship scheme by the Government launched in 2019 aiming to provide tap water to every rural household in the country by 2024. The major focus of the mission is to provide a safe, sufficient, and sustainable water supply for drinking and domestic use. 

The Finance share pattern for Jal Jeevan Mission is 90:10 for Himalayan and North Eastern States, 100:0 for Union Territories, and 50:50 for the rest of the states. Fund estimation for the Jal Jeevan Mission is INR 3.60 lakh crores.

The Mission will significantly improve the lives of children, and women, and aid in ODF sustainability as water is crucial to sustain the Swatch Bharat scheme’s goals, contributing to sustainable development of India. For developing in-village water supply infrastructure, treatment plans, water resource management, distribution network, etc., skilled, semi-skilled, and qualified human resources will be required. 

4. Samagra Shiksha Abhiyan

The major objective of Samagra Shiksha in SDG-4.1 is to provide complete free, equitable, and quality primary and secondary education by 2030, crucial to the holistic and sustainable development of India. The scheme has extended its plan to five years, from 2021-22 to 2025-26. It is also a part of SDG-4.5 that prepares to eliminate gender disparities and ensure equal access to all levels of education and vocational training for the vulnerable, including children with disabilities. 

The government initiated to address many challenges with this scheme in the education system. 

• Quality and inclusion at all levels of school education. 
• Special attention to Foundational Literacy and Numeracy. 
• Bridging Social and Gender Gaps in Education
• Vocational education
• Upgrade SCERTs/SIE, and DIETs (District Institute of Education and Training)
• Focus on the Early Childhood Care and Education

5. National Skill Development Mission

The Government of India initiated the National Skill Development Mission (NSDM) to bridge the necessary ‘skill gap’ in the Indian economy. 

The main objective of this scheme is to provide market-relevant skills to over 40 crore youth by 2022. It prepares to address the large void between the demand and supply of skilled human capital that helps address the gap between the Indian Economic ambition and its achievement. 

This mission has a huge scope to increase economic growth rate in India through its various plans, leading to heavy employment, the focussed plans under NSDM are Pradhan Mantri Kaushal Vikas Yojana, Skill Development Initiative Scheme, and Skill India Mission. This way, NSDM has significantly contributed to the nation’s skill development and economic empowerment. It has resulted in increased job placements and entrepreneurship opportunities. NSDM continues to play a vital role in shaping India’s workforce and SDGs. 

6. Mahatma Gandhi National Rural Employment Guarantee

MGNREGA has been a flagship scheme for more than a decade. It’s main objective is to cater to the enhancement of livelihood security for rural households. The 100 days of guaranteed wage employment every financial year to every household whose adult members volunteer to do unskilled manual work, ensures better infrastructure and connectivity through asset creation, ecological security, and decentralised governance. Not just reducing poverty and creating ripple effects with positive implications, the scheme also focuses on effective natural resource management, and climate resilience through afforestation, agricultural, and water conservation activities. 

MGNREGA is recognised as the core source for the Sustainable Development Goals‘ objectives with commitments like ‘No Poverty,’ crucial in achieving ‘Gender Equality,’ Decent Work and Economic Growth,’ and ‘Reduced Inequalities.’ It has the potential to achieve 13 Sustainable Development Goals, 27 Targets, and 42 Indicators planned through every scheme proposed by NITI Aayog. 

7. National Smart Cities Mission

The government of India says NSM was launched to create safe, resilient, inclusive, and sustainable cities and human settlements. Coming to its participation in SDG India, 13.3% of Smart Cities Mission projects contribute to SDG 6, which is Clean Water and Sanitation. The scheme contributes 8.6% of its projects to SDG 7, which is Affordable and Clean Energy. SDG 8, Decent Work and Economic Growth goal also receives contributions from this mission’s projects, which is 6.4%. 

As per the reports, the SCM projects have contributed to 15 out of 17 SDGs. The extended deadline for the Smart Cities Mission is June 2024. In the Smart Cities Conclave in Indore, the Housing and Urban Affairs Minister stated that there are INR 1.71 lakh crore worth of projects, where INR 1.10 lakh crore worth of projects were completed and the remaining is to be finished by the extended deadline. 

8. Prime Minister Gati Shakti Mission

The Prime Minister Gati Shakti Mission was launched in October 2021 with an aim to provide multimodal connectivity infrastructure to various economic zones. This mission’s objectives address the connectivity problem and have the potential to emerge as a game-changer in Indian economic growth and sustainable development. 

The project is worth INR 100 lakh crore, launched by the PM to enhance the infrastructure landscape in India and also upgrade India’s competitiveness in the market. The mission lays out a centralised outlet that unites the infrastructural initiatives of 16 central ministries and departments. Big projects like UDAAN, Railway Network Expansion, etc. will be executed by PM Gati Shakti, and its master plan is to employ a large number of individuals, and boost the economic growth rate in India. 

9. Swachh Bharat Abhiyan 

Swachh Bharat Abhiyan is a cleanliness campaign aimed at eliminating open defecation and improving solid waste management. It was launched in 2014 and proposed to achieve Open Defecation Free (ODF ) in India in five years. The action plan is to construct toilets from 14000 to 48000 daily and to improve the growth percentage of toilets from 3% to 10% by 2019. 

The mission aimed to create awareness at the National level and State levels via audio-visual, local programs, and mouth communication to spread awareness. The estimated budget of the mission is INR 62,009 crore including the central’s share of assistance of INR 14,623 crores. This mission progressed the country to achieve SDG 6.2, which is adequate and equitable sanitation access for all, significantly for women and girls. 

10. AADHAAR

The world’s largest Biometric system is a success story. It was launched to foster social, economic, and technological inclusion on a national scale and it succeeded. The AADHAAR contribution to SDGs is achieving Environment and Water Governance as it is the need of the hour for human existence. 

AADHAAR believes that environmental degradation and social injustice go hand in hand. AADHAAR’s work involves enhancing the capacities of local governments, civil society, and communities on environmental and climate change issues. It also promotes climate resilience, sustainable agricultural practices, hygiene and sanitation education, disaster mitigation planning, and awareness generation, which are major parts of SDGs.

Five steps to achieve sustainable economic growth rate in India

India aims to reach USD 5 trillion with three major industries: USD 1 trillion through Agriculture and its allied activities, USD 1 trillion from manufacturing, and USD 3 trillion in Services that include IT and Business, Retail and Other services. The GDP growth rate of India has revived to USD 2.73 trillion in 2021. 

1. Sustainable Agriculture

To nurture food security and maintain ecological balance, transforming into sustainable farming is highly necessary at this point in time. Addressing challenges in sustainable agriculture like over-reliance on rainfall, fragmented landholdings, and requiring the adoption of climate-resilient agriculture will put the nation forward in sustainable development goals in the agriculture sector. 

By promoting investments in sustainable agriculture practices, India can secure a nutritious diet for its massively developing population by 2047. The power of impact investments reaching USD 846 million into the agriculture sector, draws attention to the industry’s willingness to include sustainability and climate-friendly practices at its core.

2. Energy Transition

By 2030, India aims to achieve the target of producing 500 gigawatts of renewable energy, which unlocks 80% of power capacity additions from renewables.

India’s push for Green Hydrogen through National Hydrogen Policy demonstrates its determination to encourage low-emission fuels. The investments are reaching higher to USD 14.5 billion during 2021-2022, exemplifying the country’s unwavering dedication to a greener energy future. 

The nation’s solar power generation and clean energy practices are evident that India is delivering its role in Green Mining, a part of SDGs. Green Mining is adopting sustainable mining practices that control environmental damage to the maximum extent. The main objective of Green Mining is to start mining and end it to ensure that green mining practices lead to sustainability. That is why, PSU’s under the Coal Ministry varied into green mining alternatives and made an investment plan worth INR 2.5 lakh crore by 2030 in new business areas, new mine development projects, and clean coal technologies. 

3. Sustainability in Technology

Digital technologies play a vital role in reaching the Net Zero target soon. One of the steps in sustainable development goals is that businesses and communities should have access to real-time data monitoring and predictive models, enabling organisations to anticipate and adapt to the impacts of climate change. The innovative 5G technology implementation in the country holds the key to resource optimisation and significant carbon-emission reductions. 

Promoting more energy-efficient facilities will be the right path for sustainability. One of the most high-impact and overlooked contributors to climate change is the organisation’s real estate portfolio. 40% of greenhouse gas emissions are reported under real estate. Switching to more energy-efficient office spaces, data centres, and tech operations can be more sustainable. 

Encouraging green computing practices like optimised data centres, training employees with sustainable practices, adopting cloud computing, and managing e-waste responsibility will reduce environmental impact and save costs, eventually meeting the needs of eco-conscious consumers. 

Robotics has been emerging as a hope and offering transformational solutions that enhance efficiency, reduce environmental footprint, and curb waste management across sectors like agriculture, transportation, and manufacturing. These advancements prove to be the game changers in driving sustainable growth. 

4. Sustainable Finance

India must support its efforts to bridge the gap between funding and climate goals. To promote this, the Reserve Bank of India has joined the Network for Greening the Financial System NGFS, emerging as the sustainability champion. Presently, India’s requirements in green finance accounts are emphasising the need to mobilise approximately USD 170 billion annually to fuel climate ambitions. 

The collective action from finance institutions towards sustainability cannot be set aside to drive the change needed in the country. To revolutionize the sustainable finance landscape, factors like pooled investment funds, innovative green financing products, and sustainability-linked bonds are committed to the change. 

5. Sustainable Transportation

In the nation’s goal of achieving the Net Zero target, the transportation and logistics sector has its own challenges and opportunities. The transportation of goods, which is heavily reliant on fossil fuels, should adapt to cleaner alternatives. Similarly, optimising logistics processes is highly imperative to reduce CO2 emissions. India is committed to achieving the goal of a USD 26 trillion economy by 2048. However, with collaborative efforts from the government, financial institutions, private sectors, and international partners, sustainable transportation financing is making remarkable progress.

Tier 1 cities like Pune support sustainable transport projects like the Bus Rapid Transport System BRTS with significant budgets. Pune also dedicated its support to green fuel initiatives, which is a transformational path in green logistics momentum. 

Reaching India’s Sustainable Economic Growth Goals

India’s economic growth depends on key issues such as infrastructure development, unemployment, environmental concerns, and fiscal discipline. Economic growth is the increase in the gross domestic product GDP over time. Whereas, sustainable growth involves maintaining this growth rate without causing other economic issues. Rapid growth can consume resources, creating environmental problems and contributing to global warming. When it comes to practicing sustainability in major sectors like technology, finance, agriculture, energy, and transportation, presently in India, the scope of green is enhanced. The nation’s steps towards the SDGs are proving its dedication and setting a path for its 100th Independence Day.