India’s Path to Prosperity: Empowering Youth and Strengthening Made in India
A Blueprint for Global Leadership Through Innovation and Inclusion
Tariq Bhat
As India strides toward becoming a $5 trillion economy, its demographic dividend—650 million citizens under 25—positions it uniquely to redefine global economic paradigms. The convergence of a revitalized ‘Made in India’ initiative, empowered youth, and decentralized private-sector growth offers a transformative roadmap. By harnessing state-specific strengths, fostering innovation, and democratizing opportunities, India can transition from potential to powerhouse.
The ‘Made in India’ vision must evolve beyond low-cost manufacturing to dominate high-value sectors like semiconductors, green tech, and AI-driven industries. Karnataka’s Bengaluru, home to 15,000 startups and tech giants like Infosys and Wipro, exemplifies this shift. The state’s innovation ecosystem, supported by policies like the Karnataka Startup Policy 2022, has attracted $50 billion in IT exports. Similarly, Tamil Nadu’s Chennai, dubbed the “Detroit of Asia,” produces 35% of India’s automotive GDP, with global players like Hyundai and Nissan leveraging its skilled workforce and supplier networks.
Maharashtra’s textile sector, modernized through AI-powered looms and sustainable practices, now contributes $12 billion to exports. To replicate such success, India must prioritize:
Increase spending from 0.7% to 2% of GDP, as South Korea did to become a tech titan.
Gujarat’s Dholera Solar Park and Andhra’s Visakhapatnam Electronics Hub show how tailored infrastructure spurs growth.
India’s youth face a paradox: 50% of engineering graduates struggle to find jobs, yet startups like BYJU’S (valued at $22 billion) and Zomato(serving 10 million monthly users) prove untapped potential. Kerala’s Startup Mission (KSUM) bridges this gap, incubating 4,000 startups since 2006, including AI-driven agritech firm Fasal. Scaling such models nationally requires:
Expanded funding access: The National Startup Advisory Council’s ₹1,000 crore seed fund is a start, but states like Telangana’s T-Hub (Asia’s largest incubator) offer blueprints for public-private mentorship.
-Education reform: IIT Madras’s Research Park, housing 100+ deep-tech firms, shows how academia-industry collaboration (e.g., Ola Electric’s R&D hub) drives innovation.
Ritesh Agarwal’s OYO (now in 35 countries) and Falguni Nayar’s Nykaa (IPO success) highlight how mentorship and market access turn ideas into empires.
India’s states are microcosms of opportunity. Gujarat, contributing 30% of India’s pharma exports and 15% of renewable energy capacity, demonstrates sectoral dominance. Uttar Pradesh, with its ₹25,000 crore semiconductor plant and 85 lakh MSMEs, is leveraging its workforce to rival Guangdong’s manufacturing might.
Bihar’s agricultural prowess—producing 40% of India’s lychees—can fuel a $10 billion food processing industry if supported by cold chains and FDI, as seen in PepsiCo’s Punjab potato farms. Similarly, Odisha’s tribal artisans, connected to global markets via Amazon’s Karigar program, doubled exports to ₹3,200 crore in 2023.
Replicate Tamil Nadu’s Coimbatore pump industry (80% national market share) through state-led industrial corridors.
Incentivize green industries: Rajasthan’s 10 GW solar parks and Assam’s bamboo-based biofuel projects align with global ESG trends.
SMEs employ 114 million Indians but contribute just 3% to global trade. Digital platforms are changing this:
Udaan, a B2B e-commerce unicorn, connects 3 million retailers to 25,000 suppliers, democratizing market access.
– Lijjat Papad, now a ₹2,500 crore cooperative, and Boat Lifestyle (₹3,000 crore revenue) exemplify scaling through innovation and branding.
– Expand the Mudra Scheme beyond ₹23.2 lakh crore disbursed, targeting underserved regions.
– Adopt Germany’s Mittelstand model: Gujarat’s machine tool SMEs, trained by German experts, now export to 50 countries.
While Skill India has trained 50 million youth, only 20% secure formal jobs. Telangana’s TASK program partners with Microsoft and Google to certify 1 million in AI/cloud computing, ensuring 70% placement. Similarly, Maruti Suzuki’s 16 ITIs produce 5,000 auto technicians annually, meeting industry demand.
IIT Bombay’s Society for Innovation and Entrepreneurship incubated 300+ startups, including Unacademy.
NEP 2020’s multidisciplinary focus can create hybrid talent pools, as seen in Israel’s tech-military education synergy.
Post-war Japan prioritized monozukuri (craftsmanship) and R&D, creating giants like Sony. South Korea’s SME-focused R&D tax credits (200% deductions) propelled Samsung. India’s PLI schemes($26 billion allocated) mirror this strategy but require faster execution.
Women-led entrepreneurship: Encourage models like SHEROES (1 million women entrepreneurs) and Nykaa.
Adopt Tamil Nadu’s EV policy (30% subsidy) to compete with China’s lithium dominance.
India’s youth, states, and SMEs are not mere participants but architects of its destiny. By embedding innovation in policy, decentralizing growth, and investing relentlessly in human capital, India can transcend its $3 trillion GDP ceiling. As Ratan Tata once said, “Take the stone the builders rejected and build a new world with it.”The stones are here—unleash them.
