An opinion in The Hindu BusinessLine makes a compelling case that India’s current economic model — rooted in reforms begun in 1991 — must be reimagined to sustain growth and deliver on long-term national aspirations as the global landscape shifts rapidly. Although the old model delivered strong GDP growth over decades, including impressive expansion rates in 2025, its limitations are becoming increasingly clear in areas such as jobs, manufacturing and balanced economic participation. 

Advocates for a new model argue that economic policy should move beyond narrowly defined market reforms and focus more on inclusive growth that generates productive employment, enhances technological capacity and strengthens manufacturing competitiveness alongside services and consumption-driven sectors. This includes rethinking how growth is measured and achieved to ensure the benefits of growth are widely shared.

A modern economic model would need to prioritise skill development, innovation, and higher-value industrialisation so that India can transition to a high-income economy while avoiding structural traps associated with being overly dependent on services and consumption. It would also require sharper focus on productivity, R&D investment, export competitiveness, and regulatory reforms that reduce red tape and attract sustained global capital. By embracing structural change and future-oriented policies now, India aims to unlock its demographic dividend, reduce inequalities and lay the foundation for a more resilient, sustainable and equitable economic trajectory in the decades ahead — especially as it positions itself for global leadership by 2047.