Gross Domestic Product (GDP) is the total monetary value of all final goods and services produced within a countryâs borders in a given period. GDP in India is calculated by the National Statistical Office (NSO).
The post-2015 GDP methodology aims to provide a more accurate, data-rich, and globally comparable picture of Indiaâs economy. To improve reliability, there is a need for greater transparency.
The World Bank defines infrastructure as “the basic physical and organizational structures and facilities needed for the operation of a society, enterprise, or system.” It is prerequisite for rapid, inclusive and sustainable growth.
A 1% increase in infrastructure investment can raise output by 0.4% in the same year and by 1.5% in 4 years. (IMF)
Modern transport, logistics and energy infrastructure reduce time and transaction costs and increase competitiveness.
Boosts Manufacturing & Exports – Eg- Port led development under Sagarmala project
Crowds in domestic private investment and FDI –
Facilitates Urbanisation and industrialization- Eg- industrial corridors, and smart cities support agglomeration economies and higher output.
Energy Security through investments in renewables (48 % of the total installed capacity).
Bridges Rural-Urban Divide- Rural roads, irrigation networks and decentralised energy systems enhance market access and livelihoods. Eg- PMGSY
Access to Basic Services – Water supply, sanitation, healthcare facilities, and DPI ensure equitable access for vulnerable groups. Eg- Jal Jeevan Mission
Balanced Regional Growth- Connectivity in tribal, hilly, and northeastern regions improves mobility, education access, and economic opportunity.
Employment Generation for low-skilled and semi-skilled workers. Eg- The PM Gati Shakti initiative is expected to create 1 crore+ jobs by 2030.
Improves standard of living – Eg- over 4Cr houses constructed under PMAY
Women Empowerment – Eg- SBM improving access to sanitation
India has the second largest road network in the world (1.5 lakh km National Highway)
Ports & Logistics: Sagarmala increased port capacity beyond 2,600 MTPA.
Digital Infrastructure: Aadhaar, UPI, BharatNet deepened digital inclusion.
Energy: Renewable capacity crossed 240+ GW, improving energy security.
Lack Of Integrated Policy- India has the second largest infrastructure deficit in the world (after Brazil)
Financing Constraints: NIP requires Rs 111 lakh crore.
Delays in Land Acquisition & Clearances slowing project execution. Eg- Mumbai Metro
Urban Infrastructure Deficits: Eg- 17% population living in slums
Logistics Inefficiencies: 13-14% logistics cost compared to 8-10% global average
Poor concession agreements and litigation in PPP projects
Neglect of social infrastructure – Eg- health and education spending at 1.9% and 4% of GDP only
Inadequate R&D expenditure (0.7% of GDP) hinder the adoption of innovative solutions.
Strengthen PPP Models with better risk-sharing and transparent concession agreements. (Kelkar Committee recommendations)
Accelerate Gati Shakti Platform for integrated planning and faster clearances.
Increase Sustainable Financing via green bonds, NIIF, and development finance institutions.
Focus on Climate-Resilient Infrastructure in coastal, drought-prone and flood-prone regions.
Sustainable and high-quality infrastructure is a essential for realisation of a $40 Trillion economy by 2047.
Indiaâs life expectancy has increased to 72.4 years (2025) due to better healthcare and nutrition. However, an ageing population brings new epidemiological, economic and social health challenges.
Rise in Non-Communicable Diseases (NCDs) – Higher prevalence of diabetes, hypertension, heart disease, cancer, dementia cause over 65% of total deaths in India.
Geriatric Health Issues
Increase in frailty, vision/hearing loss, arthritis.
Growing burden of neurodegenerative disorders like Alzheimerâs and Parkinsonâs.
Multi-morbidity – Elderly increasingly suffer from multiple chronic conditions, requiring continuous care.
Mental Health Challenges
Rising cases of depression, loneliness, anxiety.
Lack of community-based mental health services.
Treatment of chronic and age-related conditions increases out-of-pocket expenditure.
Weak Elderly Care Infrastructure – Limited geriatric wards, rehabilitation centres, home-care services and trained geriatric nurses.
Feminization of aging – women face greater economic insecurity, inadequate pensions, elder abuse, and social isolation.
Strengthen Geriatric Healthcare – Establish geriatric wards in district hospitals and train geriatric specialists
Community-Based Care
Promote home healthcare and caregiver support services.
Incentivise care economy (eldercare workers, physiotherapists).
National NCD Prevention Strategy
Screen population for hypertension, diabetes, cancers through HWCs.
Promote lifestyle interventions: yoga, diet counselling, tobacco control.
Strengthen Mental Health Services
Expand Tele-MANAS, district mental health programmes.
Senior citizen counselling and social engagement platforms.
Social Protection – Expand pension coverage by strengthening PM-SYM.
Promote Active and Healthy Ageing through Fit India Movement.
Data and Technology Integration – Use telemedicine, remote monitoring, and AI-based early diagnosis.
A forward-looking strategy that integrates healthcare, community support, and the silver economy will ensure that longer lives translate into healthier, dignified, and economically meaningful lives.
Indiaâs food processing sector is projected to grow from $307 billion (2023) to $700 billion by 2030, driven by rising demand, technological change, and strong policy support.
Large agricultural base
India is the worldâs largest producer of milk, spices, pulses, millets,
Wide product spectrum – Includes dairy, fruits & vegetables, meat, fisheries, beverages, ready-to-eat (RTE), and organic foods.
Lifestyle Shift – 65% of Indians under 35, rising incomes, urbanization & busy lifestyles have boosted demand for ready-to-eat & processed foods.
Rapid growth in Organised retail and âshopping mall cultureâ– better supply chain management. Eg- D-mart
Export potential – India exports processed foods to 200+ countries
Nearly 70% of food processing units operate in the unorganised MSME sector – generate rural employment and entrepreneurship.
Demand for horticulture, poultry, fisheries, spices, and nutri-cereals supports diversification away from rice-wheat systems.
Strengthens food security – Processing improves food availability, safety, nutrient retention and supports a resilient supply chain.
Reduces post-harvest losses (15-20% of perishable losses annually) – processing improves shelf life and reduces wastage.
Doubling farmerâs income – Value addition ensures better price realisation.
Investment – Eg- Recent,World Food India attractedinvestment by global, domestic giants like Coca-Cola
Boosts employment generation – Food processing creates one of the highest employment multipliers, across harvesting, sorting, packaging, and logistics.
Drives industrialisation of rural economy – Mega Food Parks, agro-processing clusters, and cold chains stimulate local industry and logistics networks.
Foreign exchange earnings through exports improve India’s trade balance and economic growth.
As India moves forward under the Make in India vision, the food processing industry will continue to be a key driver of economic growth, ensuring food security, quality, and global competitiveness.
ADB describes PPP as “a cooperative venture between the public and private sectors, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks, and rewards.”
Investment – NIP requires Rs 111 lakh crore. PPP mobilises private capital, reducing fiscal pressure on the government.
Efficiency – Private players bring managerial expertise, technological upgrades, and project management capabilities
Risk Sharing between government and private players improves project viability.
Cost Reduction – performance-based contracts, ensures asset quality, lower maintenance costs, and better service delivery.
Faster Project Execution by reducing bureaucratic procedures. Eg- Delhi Metro
Revenue Generation for government – Eg- Toll, commercial leasing, advertisements
Station Redevelopment as multimodal commercial hubs. Eg- Gandhinagar Capital Station
Monetisation of railway land parcels through commercial development. Eg- Habibganj (Rani Kamlapati) Station, Bhopal
Improved Passenger Amenities with better maintenance, cleanliness and world class infrastructure. Eg- Ayodhya Railway Station
Revenue generation for Railways via lease rights and development rights.
Faster Implementation through EPC-PPP Mix, ensuring speed + financial viability.
Catalyst for Transit-Oriented Development (TOD)- Redeveloped stations become urban nodes supporting business, tourism, and last-mile connectivity.
Land acquisition delays due to overlapping jurisdictions, unclear titles, and restrictions on commercial use.
Uncertain Demand & Revenue Realisation
High Capital Requirement & Long Gestation period deter private players.
Regulatory Issues- poor coordination between railway authorities, urban local bodies, and concessionaires.
Rigid Contract Structures and concession agreements – lead to Litigation
Transparent Model Concession Agreements with clear risk allocation and dispute mechanisms.
Stronger Institutional Capacity in Indian Railways for PPP management.
Hybrid PPP Models – EPC for core assets + PPP for commercial components
Single-window clearances for faster approvals.
Implementation of VIjay Kelkar Committee recommendations on PPP can transform railways into modern, inclusive, multimodal transport hubs
Under panchamrit Targets at COP26, India committed to achieving 50 percent of its installed electricity capacity from non-fossil (clean and renewable) sources by 2030.
Non-fossil capacity reached around 50% of installed capacity in 2025, ahead of the 2030 deadline.
India stands 4th globally in Renewable Energy Installed Capacity, 4th in Wind Power capacity and 3rd in Solar Power capacity (as per IRENA RE Statistics 2025).
India focuses on five key priorities to achieve its 2030 target of 500 GW non-fossil capacity.
Better Contracts: Long-term power deals to attract investors.
Stronger Grids: Modern grids and battery storage for steady power supply.
Make in India: Boosting local production of solar panels and wind turbines.
Smart Land Use: Using land wisely with floating solar and solar on farms.
Easy Financing: Making funds available to support clean energy projects.
Government efforts
National Solar Mission – Expansion of solar capacity at utility and rooftop level.
PM-KUSUM – Solarisation of agricultural pumps and rural feeders.
National Wind-Solar Hybrid Policy – Maximises land and grid utilisation.
PM Surya Ghar Muft Bijli Yojana – Accelerates residential rooftop solar.
Institutional mechanisms
Green Grids Initiative under OSOWOG
BEE and PAT Scheme – Promote energy efficiency.
Economic incentives
PLI Scheme for Solar PV Modules and Batteries
Viability Gap Funding and Capital Subsidies
Green bonds for clean energy projects.
Global efforts and partnerships
Technology transfer and funding through ISA, IBSA, G20
Participation in Just Energy Transition Partnerships (JETP) and multilateral climate funds.
Policy inconsistency (continued approval of coal plants) weakens investor confidence in renewables.
Financial Challenges
India needs nearly
High upfront capital costs and slow RoI discourage private investors.
Limited availability of low-cost green finance for small and medium developers.
Intermittency issue and limited energy storage solutions.
Grid integration problems due to weak transmission and distribution.
Import Dependence. Eg- China supplied ~56% of Indiaâs solar cells in FY2024. 100% import-dependent for lithium, cobalt, nickel, graphite, copper.
Skilled manpower shortage in advanced RE technologies.
Land & Environmental Constraints – Eg- Sillahalla Hydro Project (Tamil Nadu) raised concerns over biodiversity loss and displacement.
E-Waste – No comprehensive solar recycling policy or sufficient recycling infrastructure
Delayed payments and PPA renegotiations/cancellations coupled with weak financial capacity of DISCOMS impact market stability
Level playing field – Removing fossil-fuel subsidies makes RE more competitive and attractive.
Lower cost of clean energy – Redirected subsidies can reduce tariffs of solar and wind
Crowding in private investment due to higher returns and lower risk
Savings can be used for battery storage, smart grids, green corridors and EV charging networks.
Reduced fossil fuel demand due to higher prices
Global leadership – Strengthens Indiaâs position in climate negotiations and green diplomacy.
Optimize Land and Water Resources – Eg- Omkareshwar Floating Solar Park.
Develop Renewable Energy Clusters with single-window clearances and fiscal incentives.
Leverage Emerging Technologies – Eg- blockchain-based P2P renewable energy trading
Expand Renewable Infrastructure – Scale rooftop solar, microgrids and solar pumps for rural electrification and off-grid solutions.
Circular Waste-to-Energy Parks using anaerobic digestion, gasification and pyrolysis. Eg- Jamnagar
Indiaâs energy transition can help realise SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), and SDG 9 (Industry, Innovation, and Infrastructure).
As per OECD, inclusive growth is economic growth distributed fairly across society and creates opportunities for all. A market economy drives efficiency and innovation, but without corrective policies it can widen inequalities.
Efficient Resource Allocation- improve productivity, reduce costs, and expand economic opportunities.
Market economies enable entrepreneurship, MSME growth and innovation-driven jobs. Eg- Indian start-up ecosystem.
State as an Enabler- Government gets resources to invest in public goods.
Property rights, contract enforcement and regulatory frameworks ensure fairness.
Technological development enabling inclusive development – Eg- DBT.
Rising inequality– Eg- the top 1% control 40% of net personal wealth.
Regional disparities due to unequal investment and infrastructure. Eg- BIMARU States
Jobless growth – Service sector contributes 55% of GDP but employs less than 30% workforce
Weak social protection for informal workers (over 85% of Indiaâs workforce).
Market failures in public goods. Eg- Digital Apartheid in Education
Enhanced credit access for MSMEs, SHGs – boosts investment and employment. Eg. PM MUDRA has sanctioned over since inception.
Greater savings through Jan Dhan accounts (53 crore accounts) ensures financial stability
Formalisation of the economy via UPI, GSTN, Aadhaar – wider tax base and better compliance.
Poverty reduction through targeted DBT, eliminating leakages and improving consumption.
Womenâs economic empowerment through SHG-bank linkage, Stand-Up India, digital microcredit – raises household productivity.
Rural economic growth through Kisan Credit Cards, PM-Kisan and digital banking in villages.
Improved risk management via insurance (PMJJBY, PMSBY) and pensions (PM-SYM) – stabilises vulnerable households.
Boost to digital economy with UPI handling over – strengthens service sector growth.
Inclusive growth under a market economy is possible when markets are balanced with public investment, regulation and financial inclusion.
With 7% growth in 2025-26, India is one of the fastest-growing major economies and a bright spot on the global economy (IMF). A major driver of this performance has been the expansion in labour activity.
Demographic dividend – Median age of 28 and 65% working-age population (65%) has increased labour supply and productive capacity.
Shift towards labour-intensive sectors: Growth in construction, retail, transportation, tourism, gig and platform economy
Surge in self-employment – from 52% (2017) to 58% in 2024 (PLFS data)
The government’s skilling push through Kaushal Vikas Yojana and the Skill India Mission improved workforce capabilities.
India becoming the 3rd largest start-up ecosystem has generated new entrepreneurship-led employment.
Rise of gig economy- Platform-based work has widened job opportunities.
Labour Code reforms- consolidation of labour laws has improved hiring flexibility and EoDB.
GST reforms
Ease of Doing Business reforms
IBC
PLI schemes
Low productivity trap: Most new jobs are in informal, low-wage, low-productivity sectors.
Disguised employment rising: Higher labour supply masks underemployment.
Limited wage growth: High labour participation has not translated into better wages.
Structural transformation incomplete: Manufacturingâs share in jobs and GDP remains stagnant.
Manufacturing-led, technology-enabled growth
Expand labour-intensive manufacturing such as textiles, toys, leather, electronics assembly. Eg: PLI schemes for electronics, textiles.
Use AI, robotics, lean production to improve productivity while expanding scale.
MSME upgradation – Enable cluster-based development, digitalisation, easier credit. Eg: MSME Champions Scheme, ONDC for market linkages
Skill-based job creation through programs like Skill India, PMKVY 4.0.
Boost food processing, millets, horticulture, and FPO-based value chains.
Employment in solar manufacturing, EV ecosystem, recycling, energy efficiency can raise both jobs and productivity.
Strengthen urban employment ecosystems – Invest in urban infrastructure, housing, logistics, and city industrial clusters.
Improve FLFPR through childcare support, flexible work, safety, and skilling.
Indiaâs recent growth has been driven more by labour mobilisation than by labour productivity. A shift towards manufacturing-led, technology-driven, and green growth is essential for Viksit Bharat 2047.
Structural unemployment occurs when workers lack the skills, education, or geographic mobility required to match available jobs. In India, it reflects a mismatch between the workforceâs capabilities and the evolving needs of a modern economy.
Skill Mismatch – Majority of workforce is low-skilled; only ~4.7% formally skilled (NSDC).
Agriculture Dependence – 49% workforce in agriculture producing 16-17% of GDP
Slow Growth of Labour-Intensive Industries – Manufacturing unable to absorb labour at scale.
Automation and Digitalisation – Eg- AI, Robotics leading to job losses
Low Female Labour Participation – FLFPR at 41.7% (PLFS 2023-24) due to social norms, skill gaps, and lack of suitable jobs.
Regional Imbalances – Job clusters in southern/western India vs labour concentration in BIMARU states.
Informalization of economy – 89% of workforce in informal sector.
NSSO (under MOSPI) is the principal body responsible for estimating unemployment.
Periodic Labour Force Survey (PLFS) – NSO measures unemployment through three indicators:
Usual Status (US/PS+SS) – Based on activity over 365 days
Current Weekly Status (CWS) – If not worked for 1 hour in the last 7 days.
Current Daily Status (CDS) – Records activity for each day of last week – best for informal/underemployment.
Household Surveys – Annual (rural + urban) and quarterly (urban) surveys.
Establishment Surveys
QES for formal sector
ASI for organised manufacturing
Administrative Data – EPFO, ESIC, NPS payrolls used to estimate formal job creation.
Unemployment rate = No. of unemployed persons / Total labour force
Underestimation of Informal Sector – ~90% workforce informal. PLFS & enterprise surveys do not capture home-based, gig, or platform work fully.
Surveys donât map job requirements vs worker skills, essential for assessing structural unemployment.
Low Frequency – Eg- PLFS rural data is measured annually
Urban Bias – Quarterly surveys are confined to urban areas. Rural distress is under-measured.
Limited Coverage – Gig economy, digital services, start-ups, and EV/green jobs not adequately represented.
Use Big Data Analytics to gather real-time analysis.
Incorporate âunderemploymentâ into the definition of unemployment.
Timely release of data.
Increase Frequency – Monthly or quarterly surveys for rural areas
Align with International Standards (ILO + SNA 2025)- Update definitions to include multi-job holders, remote workers, freelancers, and platform-based workers.
Improving methodology is essential to generate accurate employment estimates and design stronger job creation policies.