New Delhi, Aug. 19 -- The Parliamentary Standing Committee on Finance, headed by Lok Sabha MP Bhartruhari Mahtab, submitted its 26th Report to Parliament on Tuesday, providing a holistic roadmap for India's economic development amid international geopolitical and economic uncertainty.
India's leap into a high-income economy relies significantly on innovation, resilience, and reforms, as opined in the "Roadmap for Indian Economic Growth in Light of Global Economic and Geopolitical Circumstances" study.
The Committee observed that due to its young population, robust macroeconomic foundations, and rising digitisation, India is more able than most of its regional neighbours to ride out the present convulsions. But it emphasised that the economic path would be shaped by the pace and effectiveness of deregulation and reforms.
A principal recommendation was a reorientation of the nation's export strategy. The Committee asked that the government concentrate on improving the competitiveness of manufacturing and exporting to a wider range of markets, while at the same time strengthening domestic resilience through fiscal consolidation.
It further recommended that market regulators like SEBI and RBI press on with efforts to simplify regulations and enhance infrastructure.
On inflation, the panel emphasised that monetary measures cannot be the sole bet for price stability. It contended that productivity-driven structural change should underpin inflation management to bring macroeconomic stability and inclusive growth.
The transition towards clean energy was another key thrust area, with the Committee urging the government to adopt sustainable policies that reconcile affordability and efficiency with India's climate goals and larger socio-economic priorities.
Agriculture was noted in the report to be key to balancing short-term relief with long-term planning to make it more productive and resilient. The Committee advised speeding up digital initiatives to facilitate financial inclusion and tap the sector's full potential.
Taking into consideration challenges confronted by micro, small and medium enterprises (MSMEs), the Committee urged greater credit penetration in unserved areas, enhancing financial platforms like the Trade Receivables Discounting System (TReDS) and Exchange-Based Factoring and seeking mechanisms beyond current credit guarantee schemes to minimise financial vulnerability. It also recommended awareness and capacity-building drives encouraging small businesses to venture into public listing.
Jobs and upskilling were termed key pillars for India's growth story. The panel emphasised the importance of convergence between skilling and employment ecosystems, education, and healthcare ecosystems, especially with artificial intelligence altering labour markets.
It urged nimble, modular skilling programmes created in partnership with industry. Recognising government programs such as the Pradhan Mantri Viksit Bharat Rozgar Yojana (PM-VBRY), the Committee has suggested benchmarking Labour Force Participation Rate as a part of the roadmap for Viksit Bharat 2047.
The Committee has also highlighted poverty reduction, calling for periodic monitoring and evaluation of schemes so that they remain sensitive to demographic changes and emerging issues, thus promoting inclusive growth.
On research and innovation, the panel urged the government to encourage R&D in all sectors and raise awareness about new technologies to enhance India's leadership in global innovation.
It also called for robust monitoring of the newly approved Research Development and Innovation (RDI) Scheme, while facilitating co-operation among academia, industry, and government institutes.
The Committee also explored India's deepening digital economy but raised alarm regarding "digital deserts" in rural and underserved communities.
It suggested augmenting digital infrastructure in remote areas and proposed routine studies to assess whether formalisation translates into lasting income security, social protection, and employment for the long term, particularly for informal workers.
The document, presented in Parliament, mirrors a wide-ranging vision to guide India's economy through uncertain times while delivering sustainable, inclusive, and growth-driven innovation over the next couple of decades.
Published by HT Digital Content Services with permission from Millennium Post.