Introduction

India has been at the centre of global attention for its remarkable economic growth, driven by factors ranging from demographic strength to forward-looking government policies. Recently, India’s Minister for Commerce & Industry, Mr. Piyush Goyal, stated that the country is “on track to achieve a $5 trillion economy by 2027,” a remark that has sparked both optimism and debate in India and abroad. His statement comes at a time when the nation is actively working to strengthen its global standing and accelerate its journey toward becoming a developed economy.

Explain Public Policy & Governance

While politicians and ministers may say whatever suits their narrative to influence the public, the real work to sustain peace and ensure growth is done by the economists, diplomats, etc. Public Policy and Governance is a holistic study to decipher the functionalities of the government machinery, create laws and policies that meet the public’s expectations and make the process efficient. 

Today’s world of politics and governance is mostly modelled around a republican ideology that puts the power back into the hands of the very people to elect representatives who will bring their issues to light. These local representatives have the power to raise public issues to the government and provide plans for policies that promise to deliver an effective solution. 

Economics & Public Policy: What Impact Does Economics Have on Public Policy?

Public policies are planned and executed on several important matters that can improve the lifestyles, infrastructure, healthcare services, and economy of the people. The economy is one of the most significant elements of governance and politics, which determines the growth, development, and also indicates the possibility of corruption. Hence, the economic condition of a state is very much dependent on the governmental policies for the public. 

Every country has different economic interests, and the government is in charge of overseeing all economic activities of big companies and industries trading with other national and international players. These activities are considered to be significant contributors to the regional development and economic growth of the people. Policy changes are usually enacted with the intention of improving the economic and social conditions of the people. 

Public Policies made by the government are engineered to maintain and further economic growth, serving the very interests of the general public. Monetary policies and fiscal policies are the two common ways for a federal government to respond to economic activity for the purpose of ensuring economic growth. 

“India on track to achieve $5 trillion economy by 2027” – Is It True?

The Indian economy is believed to be one of the fastest-growing economies, acknowledged by global organisations like the IMF. The Indian government and many foreign economic forums have predicted this steady rise to push India to become the third-largest economy, crossing the $5 trillion benchmark, surpassing Japan and Germany, and only falling short of the two giants, China and the USA. 

Since the official admission of the statement, India’s economy has been scrutinised, and the reasons to support the statement seem justifiable enough to prove the sentiment. GDP, demography, and similar factors are taken into account to arrive at the statement. 

Why is This Ambition Significant?

As a developing nation with the largest population, India’s development is not just a dream but a vision for a better life. Contending for the third place on the world economy scale after around 70 years of independence is a great feat. 

In 1947, India started with a mere $33 billion with a huge population. The first economic boom happened during the governance of the Narasimha Rao government in 1991, with the form of economic liberalisation. The rise of the internet further gave India the opportunity to seize the digital revolution, and with the sheer strength of its services economy contributing over 60% of the national GDP, the Indian economy was thrown into a new territory. 

By the 2014 elections, India was already a $2 trillion economy, and currently, under the Narendra Modi government, India is expected to hit $5 trillion by FY2028. These three years are crucial for the country and the government to keep their promises and work for the overall improvement in the standard of living of the people. 

How will India achieve a $5 trillion economy by 2027?

India has come a long way from where it started, and this economic growth has been possible through several laws, reforms, and policies implemented by the government for the administration of public well-being. However, to fulfil the prophecy of becoming a $5 trillion economy, India needs a detailed strategy to overcome challenges. 

Infrastructure Development:

For a country to compete for becoming one of the largest economies in the world, it needs better public infrastructure that supports and reflects the economic boost. 

Digitalisation:

Digitalisation is the key to achieving worldwide standards and making foreign trade and other transactions in digital terms. Digitalisation can also help a country in internal matters and allow the public to enjoy the many advantages of digitalisation. 

Policy Support:

Public policies proposed by government and non-government officials play a significant role in the economic development of a nation. These policies help in simplifying the regulatory framework and providing incentives to adopters of the scheme. For example, the adoption of Green technologies is being encouraged in many states, with some allotting incentives to increase the adoption rate. 

MSME Support: The MSME sectors are another important part of the strategy for achieving economic growth and creating opportunities for the development of the public. The government needs to create policies and provide financial and logistics support to encourage more players to build an undeterred network. 

India has several advantages working in its favour, most notably its expanding workforce and a demographic profile marked by a growing youth population. This combination is projected to help India emerge as the world’s third-largest economy, provided it successfully implements the strategies outlined above.

In this context, studying public policy and governance becomes crucial. It equips citizens with the knowledge and responsibility needed to understand, shape, and evaluate government action, enabling the country to design and implement policies that effectively serve the public good.