Competitiveness Roadmap for India@100

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    • Recently, the Competitiveness Roadmap for India@100 was released by the Economic Advisory Council to the Prime Minister (EAC-PM). 

    Major highlights of the report  

    • Collaboration
      • The roadmap is a collaborative endeavour between the EAC-PM and The Institute for Competitiveness.
    • Vision
      • It envisions setting new guiding principles for the country’s growth journey over the following years and guiding different states, ministries and partners in India’s growth to develop sector-specific roadmaps for achieving targeted goals.
    • Framework by Michael E. Porter 
      • The Competitiveness roadmap for India@100 is based on the Competitiveness framework developed by Professor Michael E. Porter.
      • The Competitiveness approach puts forth the idea of productivity as a driver of sustained prosperity.  
      • It emphasizes the context that a nation is able to provide firms to be more productive and for individuals to be able to partake in the value generated through their productivity.
    • ‘4 S’ principles 
      • The India@100 roadmap guides the way for India to become a high-income country by 2047 through sector-specific and region-specific policies based on the ‘4 S’ principles.
      • The ‘4 S’ guiding principles redefine our approach to attaining prosperity by stressing the need for prosperity growth to be matched by social progress, to be shared across all regions within India, to be environmentally sustainable, and to be solid in the face of external shocks. 
      • The ‘4 S’ guiding principles pave the way for resilient and holistic development.

    Significance of the report 

    • It offers a strategic perspective: on how to translate the diagnostics on a country’s competitiveness fundamentals into actionable insights.
    • Cornerstone: The competitiveness approach must serve as the cornerstone of India’s economic and social policy for us to be able to sustain long-term economic growth.
    • Diagnostic assessment: It offers a thorough diagnostic assessment of India’s current competitiveness level, the primary challenges faced, and opportunities for growth.
    • It sets out the pathway to becoming a high-income country: the roadmap suggests essential areas of action, including improving labour productivity and enhancing labour mobilization, boosting the creation of competitive job opportunities, and improving policy implementation through greater coordination across different ministries.
    • Collaborative efforts: If India’s development trajectory has to emerge faster, higher, and stronger, both government policies and the enterprises and markets functioning in the environment are of great significance.
    • Ease of living and business model: India is working towards presenting a sustained growth model based on ease of living for its people and ease of doing business for its industries.

    Way forward

    • The solution does not lie in narrow interventions: what is needed to accelerate progress is a clear strategy enabling action to focus on key priority areas. 
    • Guiding principles: The recommendations outlined in the roadmap factor in India’s unique advantages are based on a new set of guiding principles, policy goals, and implementation architecture. 
    • World will learn from India: Understanding India’s competitiveness challenges and opportunities also help gain insights into the challenges and opportunities that the world is facing.
    • Policy implementation: The change in approach to development in different sectors and states will not only shape policy actions today but also have an impact on the design and implementation of future policies. 

    Economic Advisory Council to the Prime Minister (EAC-PM)

    • It is an independent body to advise the government, especially the Prime Minister, on economic and policy-related matters. 
    • Set up in 2017 with a term of two years, replacing the erstwhile PMEAC, which was headed by former Reserve Bank of India governor C Rangarajan during the terms of former Prime Minister Manmohan Singh.
    • Function & Mandate:  Analysing any issue, economic or otherwise, referred to it by the Prime Minister and advising him thereon. 
      • Addressing issues of macroeconomic importance and presenting views thereon to the Prime Minister”, either on its own or upon reference.
      • Presenting to the PM from time-to-time reports on “macroeconomic developments and issues with implications for economic policy”.

    Source: PIB