lannin in ndia 5.53
very contours of India—highlighted by the operating just at the international cutting
government document in the five areas: edge, but also with a global scale and
1. Demographic shift: India’s population reach. This changed economic landscape
has increased over three-fold to reach requires a new administrative paradigm in
121 crores. This includes an addition which the role of the government must
of over 30 crore people to Urban India. evolve from simply allocating resources
As well as an increase of 55 crore youth in a command and control eco system,
(below the age of 35), which is more than to a far more nuanced one of directing,
one and a half times the total population calibrating, supporting and regulating a
of the country then. With increasing market eco system. National development
levels of development, literacy and must be seen beyond the limited sphere
communication, the aspirations of the of the ‘Public Sector’. Government must,
people have soared, moving from scarcity thus, transition from being a ‘provider
and survival to safety and surplus. Today, of first and last resort’ and ‘major player’
we are looking at a completely different in the economy, to being a ‘catalyst’
India, and country’s governance systems nurturing an ‘enabling environment’,
need to be transformed to keep up with where the entrepreneurial spirits of all,
the changing India. from small self-employed entrepreneurs
2. Economic shift: India’s economy has to large corporations, can flourish. This
undergone a paradigm shift. It has importantly, frees up the government
expanded by over a hundred times, going to focus its precious resources on
from a GDP of Rs. 10,000 crore to Rs. public welfare domains such as essential
100 lakh crore at current prices, to emerge entitlements of food, nutrition, health,
as one of the world’s largest economics. education and livelihood of vulnerable
Agriculture’s share in the GDP has seen and marginalised groups of the society.
a dramatic drop, from more than 50 per 4. Forces of globalisation: In recent decades,
cent to less than 15 per cent. The plan the world at large has also evolved. We
size of Rs. 43 lakh crore of the 12th Plan live today in a ‘global village’, connected
dwarfs the plan size of Rs. 2,400 crore by modern transport, communications
of the 1st Plan. Priorities, strategies and and media, and networked international
structures dating back to the time of the markets and institutions. In this milieu,
birth of the Planning Commission, must India’s economic actions ‘contribute’ to
thus be revisited. To align with this shift the global dynamics, while our economy
and sheer scale, India needs to overhaul also get influenced by the happenings far
the very nature of the planning processes, away from us. The framework of policy
the government says. making together with the functioning
3. Shift in the private sector: The nature of governments need to incorporate the
of the Indian economy, and the role of realities of our continuing integration
the government in it, has undergone a with the global economic system.
paradigm shift. Driven by an increasingly 5. Role of the states: Indian states have
open and liberalised structure, India’s evolved from being mere appendages of
private sector has matured into a vibrant the Centre, to being the actual drivers of
and dynamic force. The sector is not national development. The development