India needs 7-8% growth for Viksit Bharat, private investment and export push crucial: EAC-PM Chairman
New Delhi, June 23
India requires a sustained economic growth rate of 7 to 8 per cent to achieve its goal of becoming "Viksit Bharat" by 2047, a target that hinges heavily on a revival in private sector investments and robust export growth.
Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), speaking to the media at the sidelines of FICCI India Innovative Crop Nutrition Conclave 2026, stated that structural reforms implemented over the last few years laid the groundwork for this trajectory.
"We need 7% to 8% growth for Viksit Bharat, and we need investment for that. So, private sector investment is equally important, and export growth is also important. The Prime Minister has mentioned Atmanirbhar Bharat. That is equally important," Dev said.
He emphasised that the domestic market must enhance both its competitiveness and product quality to meet global standards.
Addressing the strategy behind the self-reliant India initiative, the EAC-PM Chairman clarified that the policy framework does not signal a retreat from global trade. Instead, the focus remains on building domestic capability to leverage the country's current demographic and technological advantages.
"We have done many reforms over the years, and that will continue in the years to come. So Atmanirbhar Bharat doesn't mean import substitution, but we are basically saying that the domestic competition should increase the quality of the products so that we can export more," Dev added.
He further noted that, "we have demographic advantage and technology improvement skills. So all these things will lead to the Viksit Bharat by 2047."
The government identified specific areas to reduce import dependencies, compiling a list of 100 items where domestic manufacturing can substitute foreign goods. This strategy, alongside ongoing efforts to improve the ease of doing business and the ease of living, forms part of a broader plan to buffer the economy against external vulnerabilities.
"Geopolitically, the government has emergency plans from the COVID prep onwards. So we can probably withstand all these shocks, and shocks will be there in future also. So that's why Atmanirbhar Bharat is important," Dev said.
On the agricultural front, Dev noted that shifting away from traditional chemical inputs represents a key policy focus.
The government aims to increase the share of alternative agricultural practices, specifically organic and natural farming, to manage the overall consumption and fiscal burden of fertiliser subsidies.
Recent shifts in global commodity markets provided some fiscal relief on this front. Dev mentioned that international urea prices dropped from USD 900 to USD 450, which will result in a lower subsidy burden for the government.
Turning to macroeconomic indicators, Dev expressed confidence in current food reserves, noting that India maintains enough pulse stocks to keep domestic food inflation from rising significantly. However, external factors continue to pose risks to the baseline outlook.
"Overall, because of the West Asia war and also a bit of El Nino...I think I agree with the RBI projections of 6.6% growth and also 5.1% inflation," Dev said.
— ANI
Reader Comments
I appreciate the focus on Atmanirbhar Bharat not being about import substitution but about improving domestic quality. That's a nuanced take often missed in public debates. However, I'm skeptical about organic farming targets - shifting farmers without proper market linkages and yield support could backfire. Need more concrete plans on that front.
Interesting to hear the EAC-PM Chairman acknowledge that external shocks are inevitable - that's realistic. The fact they have emergency plans from COVID is reassuring. But the real test will be how quickly we can pivot when another crisis hits. The demographic dividend is only an advantage if we create enough jobs, which is still a big question mark.
6.6% growth projection from RBI vs 7-8% needed for Viksit Bharat - that's a gap we need to bridge urgently. Private investment hasn't really taken off despite tax cuts and PLI schemes. Maybe we need more sector-specific reforms, especially in labour and land? Also, good to see agriculture getting attention - natural farming is the way forward if done right. 🌱
The point about reducing import dependency on 100 items is smart, especially given geopolitical tensions. But we should be careful not to repeat the license raj mistakes of the past - protectionism without competition kills efficiency. The Chairman's clarification that Atmanirbhar doesn't mean shutting off trade is reassuring. Let execution speak now. 💪
Falling urea prices from $900 to $450 giving fiscal relief is a good break, but that's market luck, not policy
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