New Economic Transformation Strategy for India

India stands at a decisive juncture where global disruptions, protectionist trade wars, capital market volatility, and technological shifts demand a recalibrated, multi layered, radical economic transformation strategy for India's economic drive to achieve the aspirational targets in a time bound accelerated manner.

While existing policies (PLI schemes, National Infrastructure Pipeline, Green Energy Transition, Defense Exports, etc.) have laid a foundation, the present scale, pace, and scope of implementation are inadequate.

A bold, well-defined, and execution-driven action plan is needed to:

•  Transform India into the next global economic superpower
• Neutralize risks posed by foreign trade restrictions and geopolitical uncertainties
• Attract global capital and investments at an unprecedented scale
• Monetize underutilized assets and boost productivity-driven growth
• Cut wasteful government spending and rationalize fiscal allocations

The 10 Pillars of the New Economic Strategy

1.'$1 Trillion India Investment Magnet' – Supercharging Asset Monetization

Current Policy & Its Limitations

The National Monetization Pipeline (NMP) aims to raise ₹6 lakh crore ($72 billion) over four years by leasing government-owned assets.

Problem: This is far below India's potential global benchmarks suggest that asset monetization in large economies should target at least 20% of GDP.

New Bold Measures

Expand Asset Monetization Target to $1 Trillion

Monetize government-owned land, railway assets, expressways, pipelines, airports, and telecom networks

Leverage the Temasek Model (Singapore) where monetization funds are reinvested in infrastructure

Create a Sovereign Wealth Fund

Direct proceeds into a National Investment Fund to fund AI, Green Energy, and Defense Manufacturing

Attract Global Pension & Sovereign Wealth Funds

Offer high-yield investment structures to Abu Dhabi Investment Authority, CPPIB (Canada), GIC (Singapore), and BlackRock

Expected Impact

Raise ₹80 lakh crore ($1 trillion) in 10 years

Reduce fiscal deficit by 1.5% of GDP annually

Strengthen India's forex reserves and shield against capital outflows

2. 'India – The World's Manufacturing Powerhouse' - Outcompeting China

Current Policy & Its Limitations

PLI schemes worth ₹3 lakh crore ($36 billion) exist for sectors like electronics, semiconductors, batteries, and auto.

Problem: China's manufacturing output is 6X larger than India's.

New Bold Measures

 Scale-Up Special Economic Zones (SEZs) – Next-Gen Industrial Hubs

Establish 'Smart SEZs' for AI-powered manufacturing, green hydrogen, defense tech, and semiconductors

Remove bureaucratic hurdles allow 100% FDI in advanced manufacturing with 10-year tax-free status

Massive Workforce Reskilling Program

Train 50 million workers in robotics, AI-driven production, and EV assembly lines

'India-Taiwan Chip Pact' – Semiconductor Dominance

Offer Taiwan a strategic defense partnership in return for semiconductor mega-investments in India

Target $200 billion in semiconductor exports by 2035

Expected Impact

Increase Manufacturing GDP Share to 25% (from 17%) by 2030

Add 40 million high-paying manufacturing jobs

3. 'Global Rupee' – Ending India's Single Foreign Currency Dependence

Current Policy & Its Limitations

India has begun bilateral rupee trade with Russia, UAE, and Sri Lanka

Problem: Over 85% of India's trade is still in a single foreign currency, creating forex vulnerability

New Bold Measures

Expand Rupee Trade Agreements to 50+ Countries

Offer incentives for African, Latin American, and ASEAN nations to trade in INR

Build a Digital Rupee Payment Network

Enable instant rupee settlements bypassing SWIFT, reducing forex dependency

Expected Impact

Reduce Forex Outflows by $100 Billion Annually

Strengthen India's currency reserves, stabilizing INR volatility

4. AI & Quantum Computing – India's $500 Billion Tech Industry

Current Policy & Its Limitations

India's AI & Quantum Computing R&D budget is just ₹6,000 crore ($720 million) far below China ($10 billion) and the US ($50 billion).

New Bold Measures

Increase AI & Quantum R&D Budget to ₹1 Lakh Crore ($12 Billion)

Mandate AI-Driven Automation Across MSMEs & Manufacturing

Expected Impact

Boost AI-driven GDP contribution by ₹10 lakh crore ($120 billion)

Position India as a global AI leader by 2030

5. 'Green Energy Superpower' – Cutting Oil Imports by 30%

Invest $100 billion in Green Hydrogen & EV Battery Storage

Target 30% EV adoption in government & logistics by 2028

Reduce crude oil imports by $60 billion annually

Transform India into a Green Hydrogen Exporter by 2032

6. 'Made-in-India' Defense Powerhouse – $50 Billion Defense Exports

Massive expansion of indigenous defense R&D

Fast-track military-industrial PPPs with private firms

Increase India's defense exports from $2 billion to $50 billion by 2035

7. National Infrastructure Revolution – ₹100 Lakh Crore Investment Drive

Global Sovereign Funds & Pension Investors to Co-Finance Infrastructure Projects

Reduce Logistics Costs from 13% to 8% of GDP

Boost India's export competitiveness

Create 50 million new jobs

8. Monetizing Indian Talent – The 'Talent Export Tax'

Charge a 'Talent Export Tax' on foreign firms hiring Indian professionals

Expand India's leadership in AI, Cloud Computing, and Fintech

Double IT Exports to $500 Billion by 2030

9. Aggressive Govt Cost-Cutting – ₹10 Lakh Crore in Expense Reductions

Merge inefficient PSUs & eliminate loss-making bodies

Cut VIP expenses, outdated subsidies, and redundant government departments

Redirect funds to high-priority economic initiatives

10. Agri-Tech & Global Agri-Exports Powerhouse

Expand Agri-Tech investments by $50 billion

Make India a leading organic food exporter

Increase Agri-Exports to $100 Billion by 2030

Final Takeaway: A Blueprint for India's Economic Supremacy

This ₹100 lakh crore ($1.2 trillion) economic transformation strategy will:

Boost GDP growth to 9% annually

Reduce fiscal deficit & sovereign debt significantly

Make India the AI, Green Energy & Manufacturing Leader

[The author Major General Dr Dilawar Singh is the Senior Vice President, Global Economist Forum, AO, ECOSOC, UN and has been writing on economic issues regularly.]