India@80: Defining the next two decades of economic growth

This article was published on 15 August 2026 in the Gulf News. Please click here to read the article.

Every generation inherits a different India. The India of the 50th year of Independence was opening its economy to the world. By the 75th year, the national focus had shifted to building scale – expanding infrastructure, strengthening digital public infrastructure, revitalising manufacturing and widening financial inclusion.

As India approaches its 80th year of Independence, it does so with one of the strongest economic foundations in its post-independence history. India remains among the world's fastest-growing major economies, supported by sustained public investment, macroeconomic stability and growing global confidence in its long-term growth story.

Every phase of India's economic journey has been defined by a different question. In the decades after Independence, the challenge was building a self-reliant nation. The reforms of 1991 challenged India to compete in an open economy. Over the last decade, the focus shifted from reform to execution, from designing policy to delivering outcomes at scale.

The results are visible across India. Public capital expenditure has increased from about INR 2 lakh crore a decade ago to over INR 12 lakh crore in the latest Union Budget, transforming highways, airports, freight corridors, ports and logistics infrastructure. The National Highway network has expanded from around 91,000 km in 2014 to over 1.46 lakh km today, while the operational metro rail network has grown from just five cities to around two dozen cities. The number of operational airports has nearly doubled, improving regional connectivity and bringing more parts of the country into the mainstream of economic activity.

Alongside physical infrastructure, India's Digital Public Infrastructure (DPI), anchored by Aadhaar, Unified Payments Interface (UPI) and DigiLocker, has demonstrated how technology can deliver services at population scale while creating new opportunities for innovation and enterprise. Together, these investments have created one of the strongest economic foundations in India's history.

The foundations are now stronger than ever

As India turns 80, the question changes once again. The next 20 years are not just about building a bigger economy; they are about building a more prosperous India.

That, in many ways, is the essence of the Government's Viksit Bharat@2047 vision; not merely becoming one of the world's largest economies, but becoming a developed nation where growth translates into higher incomes, better opportunities and a better quality of life.

With much of the hard work of building the foundations now underway, the questions that define India's next phase are necessarily different. Can India convert scale into sustained productivity? Can it move from manufacturing more to creating more value? Can technology become a driver of productivity rather than just inclusion? Can its cities become globally competitive engines of growth? And can its institutions evolve as quickly as its economy?

These are not simply policy questions. They go to the heart of what will determine whether India can sustain high growth and translate it into broad-based prosperity. This next phase of development will require five important shifts in policy, investment and execution.

Key priorities

Quality and inclusiveness of growth

Growth must translate more directly into prosperity for citizens. GDP will remain an important measure of economic progress, but it cannot be the only one. Ultimately, citizens experience the economy through their incomes, jobs and opportunities, not through the size of GDP. Rising per capita incomes, productive employment and improvements in living standards are what ultimately define prosperity. As India develops, the quality and inclusiveness of growth will matter as much as its pace
Creating more value

India must compete by creating more value, not simply producing more. India is today the world's second-largest mobile phone manufacturer by volume. Electronics exports have grown rapidly, and defence production has crossed INR1.4 trillion^.

These are important achievements. But as incomes rise, competing primarily on cost becomes more difficult. Sustained competitiveness will increasingly depend on moving up the value chain through design, engineering, research, intellectual property and globally recognised brands
Technology

Technology must become a driver of productivity. DPI has transformed access to finance and public services over the past decade. The next opportunity lies in improving productivity across manufacturing, healthcare, agriculture, logistics and government. Artificial intelligence can play an important role, provided it is adopted widely and used to solve real economic challenges. Over time, stronger productivity growth is what will sustain higher incomes and improved living standards
Cities

India's cities must become globally competitive engines of growth. Throughout history, no country has become prosperous without successful cities. Urbanisation raises productivity by bringing together firms, workers, ideas and markets. As India's urban population continues to grow, cities will need to deliver not only better infrastructure, but also efficient mobility, affordable housing, environmental sustainability and stronger urban governance
Institutions

Institutions must evolve into a lasting source of economic competitiveness. Investors increasingly value policy certainty, regulatory consistency and execution capability alongside market size. Citizens expect public services that are transparent, responsive and reliable. Strong institutions will increasingly determine the speed, quality and sustainability of India's development

India enters its ninth decade of Independence at a moment of opportunity. The foundations for sustained growth are stronger than they have ever been. The question now is whether India can convert these advantages into consistently higher productivity, rising per capita incomes and broader prosperity.

When India marks 100 years of Independence, the true measure of success will not be that it became one of the world's largest economies, but that it became a nation where higher per capita incomes, productive jobs, trusted institutions and better public services improved the quality of life for every citizen. That, ultimately, is the promise of Viksit Bharat@2047.