The path ahead is both exhilarating and formidable. The aspiration is to achieve in five or six decades what took others nearly two centuries. This ambition—to transform from a low or middle-income economy into a prosperous nation within one generation—demands growth at a pace far faster than historical precedent. Driving at 20 kilometers an hour allows for errors and correction. Driving at 80, however, requires sharper vision, constant vigilance and the courage to take risks. That is the reality of development today.
What makes this journey more remarkable is its democratic foundation. Most countries that achieved rapid transformation in recent history did so under autocratic regimes. South Korea, Taiwan and Spain were not democracies when they leapt forward. Even the United States, the United Kingdom and Japan industrialised before full democratic participation. Universal franchise and accelerated growth have never gone hand in hand. What is attempted here is nothing less than unprecedented: to deliver prosperity while deepening democracy.
Compounding the challenge is the mismatch between demographic and economic transitions. Fertility rates are falling faster than incomes are rising. In earlier eras, nations could sustain 6–7% growth for decades and still achieve prosperity in time. Today, the median age is rising too quickly. Once it crosses 40, economies naturally decelerate. That means there are barely 20 to 25 years to achieve high-income status before aging slows momentum. The urgency cannot be overstated: policies, reforms and investments must all be accelerated now.
A useful way to frame this challenge is through the four factors of production: land, labor, capital and entrepreneurship. Each plays a decisive role and each requires attention if development is to be sustained.
Capital is the domain where the most visible transformation has occurred. Relentless fiscal discipline has brought borrowing costs down to historic lows. Today, a 10-year AAA bond yields around 7%, while government securities stand at 6.5%—the lowest non-crisis levels since independence. Equity is no less attractive, with price-to-earnings ratios at 22–23 times. Over $40 billion flows in annually through systematic investment plans, providing a steady pool of risk capital. Corporate taxes have been cut, allowing entrepreneurs to retain more of their earnings.
The financing ecosystem has also matured. Angel investment networks are now active across towns. Venture capital firms provide pre-Series A and Series A funding, while larger buyout funds offer exits worth hundreds of millions. For entrepreneurs, there has never been a more favorable mix of debt and equity.
Yet challenges persist. Bond markets remain shallow and raising small-ticket loans is still difficult. Inequality inevitably rises when capital is more easily available in large chunks than in small ones. Here, digital public infrastructure plays a crucial role. Jan Dhan accounts have not only enabled savings but also created transactional data through India Stack. Frameworks like the Open Credit Enablement Network (OCEN) and the Open Network for Digital Commerce (ONDC) promise to expand access further. Still, these are works in progress. To sustain growth without political backlash, small entrepreneurs must gain the same access to credit as larger players.
The other three factors—land, labor and entrepreneurship—lie mostly in the domain of state governments. This is where federalism becomes critical. While global observers often focus on Delhi, real change is increasingly visible in the states. Rajasthan has allowed women to work night shifts, opening new opportunities in manufacturing and services. Tamil Nadu has whitelisted industries to reduce approval bottlenecks. Odisha has partnered with global firms, hosting a vast textile park with Japanese major Uniqlo at Cuttack, large enough to reshape regional supply chains.
Semiconductor ventures illustrate this dynamism. Indian firms, partnering with global technology leaders, have launched projects that reached first output in as little as 14 months. States like Gujarat have provided exemplary support, impressing foreign partners with efficiency. These stories are not isolated. Across the country, factories are moving from conception to production in nine to fifteen months—timelines once thought possible only in China.
Such differences highlight the diversity federalism allows. Odisha and Jharkhand, for instance, began the millennium with similar per capita incomes. Today, Odisha’s per capita output is twice that of Jharkhand. Both are mineral-rich, but governance and reform have made the difference. Bihar, meanwhile, faces elections where industrialisation and job creation scarcely figure in the agenda—a reminder that democratic pressure from citizens is essential for development to remain a political priority.
Urbanisation presents both the greatest challenge and the greatest opportunity. Housing stock, infrastructure and city governance will drive demand for decades. The contrast is stark: the average Indian lives in 130 square feet of built space, while the average Chinese in a tier-three town enjoys 550 and the average American 700. As incomes rise, the demand for housing will surge, creating one of the largest markets for construction and urban infrastructure anywhere in the world.
Cities are already showing signs of transformation. Mumbai’s new infrastructure has reduced travel times dramatically. Bangalore’s administrative restructuring reflects growing pressure from urban residents. Yet fiscal flows remain skewed. In China, over half of fiscal resources flow directly to city governments. In India, the share is under 5%. Even promising schemes like the Urban Challenge Fund, though innovative, are underfunded. To truly accelerate growth, allocations must rise tenfold.
District-level planning is the next step. With Uttar Pradesh alone as populous as Indonesia and its districts as large as Indonesian provinces, the importance of local planning cannot be ignored. Encouragingly, the state government has begun drafting district growth plans, an approach that must spread nationwide. Development cannot be dictated from the top down. It must emerge from local pressures, democratic demands and the aspirations of citizens. The role of policymakers and advisors is to enable this process, to ensure supply-side constraints are eased and to support local reforms that generate growth.
The backdrop to all of this is surprisingly positive. Post-pandemic growth has exceeded expectations. Global shocks, rather than derailing progress, have created an environment more open to bold, disruptive reforms. Citizens, businesses and leaders alike appear more willing to embrace transformation.
The challenge remains immense: to grow quickly, inclusively and sustainably, before demographic advantages fade. Yet the opportunities are equally immense. Capital is cheaper than ever, entrepreneurial ecosystems are diversifying, state-level reforms are accelerating and urban demand promises to unleash decades of growth.
India today stands at a defining moment in its development journey. The nation has already earned its place as the world’s technology services hub, with an industry worth $280 billion driving economic growth and global recognition. Yet, the coming decades will demand more than efficiency and scale; they will demand boldness, originality and vision. As the country sets its sights on Viksit Bharat 2047—a fully developed India by the centenary of independence—the question is not whether India can rise to the challenge, but how it will.
The answer lies in India’s transition from being primarily a service-led economy to becoming a true product innovation powerhouse. This is not a mere shift in ambition but a profound reorientation of mindset, strategy and positioning on the global stage. Achieving this transformation requires three bold shifts: reimagining the services playbook in the era of artificial intelligence, fostering a culture of creation and intellectual property ownership and ensuring that technology serves as an equaliser rather than a divider.
For decades, India’s IT and outsourcing sector has been the backbone of its economic success. The country has built a reputation as the services capital of the world, providing reliable, cost-effective and large-scale solutions for global enterprises. This legacy has powered economic growth and cemented India’s position in the global value chain.
But the era of artificial intelligence is rewriting the rules of the game. Generative AI is already mainstream, while agentic AI—where autonomous systems interact, collaborate and perform tasks traditionally reserved for humans—is rapidly evolving. AI is no longer a futuristic concept; it is embedded in daily life and transforming industries at an unprecedented pace. In this context, the traditional services model, however successful, risks becoming outdated.
Rather than viewing this disruption with apprehension, India must embrace it as an opportunity to lead. The challenge is not about continuing to provide services, but about reimagining them in light of new technological realities. This requires a radical rethink of the skills imparted to the country’s young workforce. It is no longer enough to master programming or maintain systems. Graduates must be trained in design thinking, problem-solving frameworks and systems-level innovation. They must learn to break down complex challenges, imagine solutions that can scale globally and adapt continuously as technologies evolve.
Equipping talent for this future demands deeper collaboration. Academia must align its curricula with emerging needs, while industry provides practical pathways for applying these skills. Government too has a role in incentivising innovation and ensuring broad-based access to training opportunities. Together, this ecosystem can prepare India’s youth not only to adapt to AI-led disruption but to define it.
The second bold shift involves moving from consumption to creation. For years, India has been recognised as the world’s back office, adept at supporting the largest global corporations with efficiency and scale. While this reputation has brought immense success, the time has come to redefine India’s role—not just as a support system, but as a brain trust where new ideas, products and intellectual property are born.
The significance of intellectual property cannot be overstated. Patents, digital platforms and proprietary technologies are the true currency of global innovation. They determine not only economic power but also technological leadership. For India to be seen as a global product nation, it must significantly increase the volume and quality of IP generated domestically.
The foundations are already strong. Over 2,700 Global Capability Centers (GCCs) operate in India, many of them driving innovation for the world. At companies such as SAP, for instance, nearly 40 percent of global R&D takes place in India, with a quarter of global patents originating from Indian operations. This demonstrates the scale of potential that already exists within the country.
In addition, India boasts the world’s third-largest startup ecosystem, a fertile ground for experimentation and entrepreneurship. Coupled with transformative public digital infrastructures like Aadhaar and India Stack, the nation has everything needed to foster innovation at scale. The challenge is to shift mindsets—from being satisfied with developing for others to creating, owning and scaling products that emerge from India.
This requires deliberate cultivation of a “product-first” culture. Entrepreneurs, researchers and corporations alike must prioritise ownership of innovation, ensuring that ideas are not only developed here but also retained, scaled and monetised globally. The opportunity is vast, but realising it will require ambition, investment and a long-term vision that extends beyond immediate service contracts.
The third essential shift is ensuring that technology acts as an equaliser rather than a divider. Artificial intelligence, like any powerful tool, has the potential to either bridge gaps or deepen divides. Used responsibly, AI can transform healthcare, education and financial services, particularly in underserved areas. Used irresponsibly, it risks excluding those who lack access, skills, or representation in its design.
For India, inclusivity is not optional; it is central to the vision of Viksit Bharat. The country’s diversity—linguistic, cultural and socioeconomic—demands technological solutions that are equitable and accessible. This means creating AI systems that work across India’s many languages, ensuring rural populations have the same access as urban centers and embedding fairness into algorithms so that societal biases are not replicated in digital systems.
Skilling once again becomes critical here. If rural communities, small entrepreneurs and disadvantaged groups are not equipped to use technology, the digital divide will only widen. Programs that expand AI literacy, provide affordable digital infrastructure and promote inclusive design must be scaled nationwide.
Equally important is a focus on responsible and ethical AI. The data that trains AI models must be diverse and representative. The outcomes of AI systems must be scrutinised to avoid perpetuating inequality. Transparency, accountability and fairness must guide every step of AI’s integration into society. Only then can technology serve as a genuine equaliser, advancing development across all sections of the population.
Underlying all these shifts is a single theme: boldness. History shows that the greatest transformations are driven not by incremental change but by courage—the courage to take risks, to question old models and to imagine new futures. For India, becoming a product nation is not a distant dream. It is an urgent responsibility.
The services legacy is a foundation, but it must be combined with bold innovation and inclusive growth. India has the talent, the scale and the ecosystem to succeed. What is needed now is the conviction to own its innovations, the determination to build intellectual property and the foresight to ensure that growth is both equitable and sustainable.
By embracing these shifts, India can do more than strengthen its economy. It can redefine its place in the world, shaping the digital products and platforms that will drive global progress in the decades ahead. The vision of Viksit Bharat 2047 is not merely about reaching developed-nation status; it is about becoming a nation that leads with innovation, inclusion and boldness. The journey ahead is challenging, but the opportunity is immense. With collective resolve and the courage to innovate, India can indeed transform itself into a global product innovation powerhouse—one that not only participates in the future but defines it.
In conversations about development, progress is too often measured by Western or European standards. India has increasingly resisted this narrow framework, insisting that its growth, challenges and achievements must be judged by criteria rooted in its own social, cultural and economic realities. This approach is not only a matter of national pride but also of intellectual independence. It reflects a deeper message: India can set its own benchmarks and the world must begin to recognise them as valid and valuable.
This perspective represents a growing sentiment in the country. The belief is that dialogue with the West must be on equal footing: if India is spoken to, it will respond; if it is preached to, it will disengage. The tone is one of confidence, rooted in the conviction that India possesses both the vision and the capability to chart its own future, even as it contributes meaningfully to global discussions.
One of the most compelling illustrations of this independent vision lies in the domain of sustainability. India first made its presence felt in global environmental discourse at the 1972 Stockholm Conference on the Human Environment. At that time, the Indian voice linked poverty directly to ecological challenges, declaring that the biggest polluter was not industry or technology but poverty itself. This intervention left a lasting impression, highlighting the unique perspective that development and environmental protection could not be separated in a country where millions struggled to meet basic needs.
Yet, after this striking debut, it took more than four decades before India once again reshaped the sustainability dialogue. In 2014, a new government assumed office and within a year India played a pivotal role at the Paris Climate Conference in 2015. The Paris Agreement, now regarded as a landmark in global environmental policy, was deeply influenced by India’s contribution. Its most critical provision—the collective pledge to keep the rise in planetary temperatures below two degrees Celsius—was championed by India. What makes this even more remarkable is that the country had been under new leadership for barely a year, yet its vision defined the course of global sustainability efforts for the next decade.
Fast forward to 2021 and the focus shifted to Glasgow for another United Nations Climate Change Conference. Here, India announced five significant commitments to the international community. While each of these was important, the most far-reaching was the promise to achieve net zero emissions by 2070. This timeline, distinct from those set by Western nations, reflected India’s reality—balancing urgent climate action with the equally pressing need for economic growth and poverty alleviation. Rather than bending to external pressure, India declared a pathway that was both ambitious and achievable. It was a clear demonstration of self-assurance: participation in global commitments, yes, but always on terms consistent with national priorities.
This posture—confident, firm and self-defined—has been evident in other arenas as well. While global tariff disputes and trade pressures have often left many countries vulnerable, India has refused to simply play by rules set elsewhere. Instead, it has asserted the strength to find its own path, to negotiate from a position of dignity rather than dependency. This resilience reflects a broader truth: India’s growing economic and political weight allows it to stand strong, even when others capitulate.
The lesson here is clear. A country can hold its head high in international dialogue only when it derives strength from its own institutions, people and values. India’s recent trajectory shows precisely that kind of internal confidence, built not on imitation but on the assertion of identity.
This brings us to another concept closely linked to India’s developmental philosophy—Bharatiyata, or the essence of being Indian. The challenge is not only to adapt to global standards but also to craft indigenous models that can command recognition on their own merit. An example of such innovation can be found in the evolution of Corporate Social Responsibility (CSR) in India.
In 2009, a framework was developed that transformed CSR from a marginal activity into a central concern of corporate governance. It was no longer an afterthought managed quietly in back rooms; instead, CSR became a matter for deliberation in boardrooms, engaging the best minds of companies in setting meaningful agendas. This shift was itself a significant achievement, but the model went further by making civil society organisations the key implementing partners.
India is home to 3.3 million civil society organisations—the largest number in the world. These groups, often dismissed by the corporate sector as “chappal and jholawala” entities, are in fact deeply embedded in communities. They work tirelessly at the grassroots, serving the disadvantaged, amplifying the voices of the marginalised and addressing needs invisible to mainstream policy. By entrusting them with the implementation of CSR projects, India built a system where corporate resources were combined with grassroots expertise.
This was Bharatiyata in action: a uniquely Indian solution, designed in India, for India. It created a model that was not borrowed or imposed but born out of local realities. Moreover, it offered lessons for the world—demonstrating how corporate power and community knowledge could be integrated into a coherent framework for social impact.
When the CSR law was drafted around 2010–2011, it drew inspiration from the Millennium Development Goals (MDGs), the global framework of the time. Yet, the law was not a simple adoption. Instead, it was an Indianisation of global ideas, expressed through Schedule 7 of the Companies Act. That schedule translated the broad vision of the MDGs into priorities meaningful to Indian society, thus creating a model that was aligned with international thinking but firmly grounded in national context. This framework has endured, standing the test of time even as the global agenda shifted from the MDGs to the Sustainable Development Goals (SDGs).
The theme of Indian models is not confined to sustainability or corporate responsibility. Governance itself provides another compelling illustration. In Odisha, the rapid pace of development compared with neighboring regions can be traced to the way administrative systems were re-energised. The bureaucracy, once described as India’s “steel frame” but later derided as a “bamboo frame,” regained its strength through institutional trust and empowerment.
By enabling administrators to execute policies decisively and efficiently, governance was restored to its proper balance: political leadership provided the vision, while professional administrators implemented it. This synergy between leadership and bureaucracy delivered tangible results, demonstrating that effective governance rests not on populist shortcuts but on the steady empowerment of institutions.
Taken together, these experiences—sustainability leadership, independent goal-setting, resilience in global disputes, innovative CSR frameworks and effective governance—form a coherent picture of India’s contemporary trajectory. The message is not one of isolation but of confident participation: India will engage with the world, but always from a position of dignity, rooted in its own values.
This approach also signals a constructive challenge to global norms. By insisting that development be measured on Indian terms, the country asserts that Western benchmarks are not universally applicable. Instead, it offers alternatives—models of Bharatiyata—that combine global ideas with local realities. These models, whether in sustainability, CSR, or governance, demonstrate that progress need not follow a single template.
The broader implication is profound. India’s rise is not merely economic or political; it is intellectual and philosophical. By Indianising global frameworks, the country demonstrates that it can contribute not only to solutions for itself but also to fresh perspectives for the world. The assertion is clear: India’s path is distinctive, its voice is strong and its models are capable of shaping the future of both national development and international cooperation.
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Inclusion is the first magazine dedicated to exploring issues at the intersection of development agendas and digital, financial and social inclusion. The magazine makes complex policy analyses accessible for a diverse audience of policymakers, administrators, civil society and academicians. Grassroots-focused, outcome-oriented analysis is the cornerstone of the work done at Inclusion.
