Daily Current Affairs 05 September 2026 – IAS Current Affairs

Current Affairs 05 September 2026 focuses on the Prelims-Mains perspective. Major events are :

---

Emergency Credit Line Guarantee Scheme (ECLGS) 5.0

Source: PIB
GS III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment

---

Why in the News?

The Government has introduced ECLGS 5.0 to provide government-backed credit support to businesses facing liquidity pressures due to external economic and geopolitical disruptions.

News in Brief

---

• ECLGS 5.0 was approved on 5 May 2026 and is implemented by the National Credit Guarantee Trustee Company (NCGTC).
• It provides government-backed credit guarantees to lending institutions for extending additional working capital to eligible businesses.
• The scheme covers MSMEs, eligible non-MSME businesses and scheduled passenger airlines.
• It is operational until 31 March 2027 or until guarantees worth ₹2.55 lakh crore are issued, whichever is earlier.
• As of 20 August 2026, more than 6.73 lakh guarantees worth about ₹2.50 lakh crore had been issued under the scheme.

Objectives of ECLGS 5.0

---

• The scheme supports uninterrupted domestic production and resilient supply chains.
• It also helps businesses preserve employment and sustain economic activity during external disruptions.
• It aims to improve access to institutional credit.
• Moreover, enhanced liquidity enables enterprises to meet short-term operational and financial commitments.

Implementing Agency

---

• The scheme is implemented by the National Credit Guarantee Trustee Company (NCGTC).
• It provides government-backed credit guarantees to Member Lending Institutions (MLIs) for extending additional working capital to eligible business borrowers.

Coverage under ECLGS 5.0

---

• MSMEs and Eligible Non-MSMEs
  • Eligible borrowers
    • The scheme is available to borrowers with existing working capital facilities from MLIs as on 31 March 2026.
    • Their loan repayments should not be overdue by more than 60 days.
    • Borrowers who have already availed additional credit under the Credit Guarantee Scheme for Exporters (CGSE) are not eligible for assistance under ECLGS 5.0 up to the amount already availed under CGSE.
    • The scheme is available to MSMEs across all sectors.
    • For eligible non-MSME borrowers, certain sectors are excluded from coverage under the scheme.
  • Guarantee Coverage
    • MSMEs: 100% credit guarantee.
    • Eligible non-MSMEs: 90% credit guarantee.
    • No guarantee fee is payable by Member Lending Institutions -MLIs under the scheme.
  • Additional Credit
    • Up to 20% of peak fund-based working capital outstanding during Q4 of FY 2025–26.
    • Maximum ceiling: ₹100 crore per borrower.
  • Loan Tenure
    • 5 years, including a 1-year moratorium.
  • Interest rate
  • The scheme ensures that loans are available at regulated interest rates.
  • For MSMEs, the rate is based on EBLR, while eligible non-MSMEs are charged based on MCLR.
  • In both cases, lending institutions may charge up to 0.75% above the benchmark, subject to an overall ceiling of 9% per annum.
  • For loans extended by eligible NBFCs, the rate of interest shall not exceed 13% per annum.

• Special Provisions for Scheduled Passenger Airlines
  Eligibility
  • Scheduled passenger airlines are eligible if their credit facilities were classified as Standard, excluding SMA-2, as of 31 March 2026.
  • Key Features
    • 90% credit guarantee coverage is available for loans extended to eligible scheduled passenger airlines.
    • Additional credit support of up to 100%, subject to a ceiling of ₹1,500 crore per borrower.
    • Amount beyond ₹1,000 crore and up to ₹1,500 crore requires proportionate promoter/owner equity contribution.
    • Loan tenure: 7 years, including a 2-year moratorium.

Evolution of ECLGS

---

The original Emergency Credit Line Guarantee Scheme was launched in 2020 under the Aatmanirbhar Bharat Package to address financial stress caused by the COVID 19 pandemic.

Phase	Major Coverage
ECLGS 1.0	MSMEs, business enterprises, Mudra borrowers and individual business loans
ECLGS 2.0	26 stressed sectors identified by the Kamath Committee and healthcare sector
ECLGS 3.0	Hospitality, travel & tourism, leisure, sporting and civil aviation sectors
ECLGS 4.0	Healthcare infrastructure and oxygen-related facilities
ECLGS 5.0	MSMEs, eligible non-MSMEs and scheduled passenger airlines affected by external disruptions

From ECLGS 1.0 to 4.0, around 1.19 crore guarantees worth ₹3.68 lakh crore were issued. These earlier phases concluded on 31 March 2023.

Significance and Challenges of ECLGS 5.0

---

• Economic Resilience
  • By providing additional credit support during periods of external or geopolitical uncertainty, the scheme can help businesses manage temporary financial stress and maintain their operations.
• Support to MSMEs
  • The 100% guarantee coverage for eligible MSMEs reduces the risk for lending institutions and can encourage them to extend additional working capital to smaller businesses.
• Employment Protection
  • Better access to working capital can help businesses meet operational expenses and continue their activities, thereby reducing the risk of job losses.
• Supply-chain Stability
  • Additional liquidity can enable firms to manage expenses related to production, inventory and other short-term requirements, helping minimize disruptions in supply chains.
• Supporting Economic Activity
  • Credit guarantees enable the government to encourage the flow of credit without directly providing the entire financial assistance as budgetary expenditure.
  • This makes them an important tool for supporting economic activity during periods of stress.

Concerns and Challenges

• Additional borrowing may increase the debt burden of businesses that are already facing financial difficulties.
• Government-backed guarantees create contingent liabilities, which could place pressure on public finances if defaults increase significantly.
• Easier access to credit may not be sufficient where businesses are facing weak demand or deeper structural problems.
• Effective monitoring is necessary to ensure that the benefits reach genuinely eligible businesses and that the additional credit is used for the intended purpose.
• A sharp increase in defaults could expose the government to significant financial liabilities and increase fiscal risks.

Conclusion

---

ECLGS 5.0 can help business manage liquidity stress and withstand external disruptions. However, its success will depend on prudent lending, effective monitoring and the financial viability of borrowers.

UPSC Prelims and Mains Practice Question

---

Consider the following statements regarding the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0:

1. It is implemented by the National Credit Guarantee Trustee Company.
2. It provides 100% credit guarantee coverage to eligible MSMEs.
3. It provides credit support only to MSMEs and excludes non-MSME businesses and scheduled passenger airlines.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a) 1 and 2 only

Mains Practice Question

Q. Government backed credit guarantee scheme can strengthen business resilience during economic shocks but may also create fiscal and financial tasks. Discuss. (250 words)

---

ISRO’s GSLV-F17 Successfully Launches EOS-05, India’s First Geosynchronous Imaging Satellite

Source: Indian Express
GS III: Science and Technology- Developments and their applications and effects in everyday life; achievements of Indians in science & technology; indigenization of technology and developing new technology.

---

Why in the News?

The Indian Space Research Organization (ISRO) successfully launched the EOS-05 Earth Observation Satellite aboard the GSLV-F17 rocket from Sriharikota, Andhra Pradesh.

News in Brief

---

• GSLV-F17 successfully deployed EOS-05 into a transfer orbit more than 190 km above Earth, from where the satellite will perform orbit-raising manoeuvres to reach its final geosynchronous orbit.
• Weighing more than 2,360 kg, EOS-05 is the heaviest satellite carried by a GSLV rocket so far.
• With an intended 10-year mission life, the satellite will provide frequent imaging for applications such as disaster monitoring, agriculture, forestry, natural-resource management and defence.
• The successful mission is important for ISRO after several recent launch setbacks and also reflects growing cooperation between ISRO, Indian industry and academia.

EOS-05 – Earth Observation Satellite

---

• EOS-05 is India’s first dedicated Earth-Imaging satellite designed to operate from geosynchronous orbit.
• It weighs over 2,360 kg and is designed for an operational life of around 10 years.
• Its geosynchronous position will enable frequent observation of the same broad region, adding a new capability to India’s Earth-observation programme.
• Most Earth-observation satellites operate in Low Earth Orbit (LEO) and pass over a particular location only at specific intervals.
• EOS-05 offers a different capability by enabling much more frequent observation of the same region.
• This can be particularly useful for monitoring rapidly changing events such as floods, forest fires and evolving weather systems.

Geosynchronous Orbit

---

• A satellite in a geosynchronous orbit takes approximately 24 hours to complete one revolution around the Earth, matching the Earth’s rotational period.
• However, a geosynchronous satellite does not necessarily remain fixed over one location.
• A geostationary orbit is a special type of geosynchronous orbit.
• A geostationary satellite must have a circular orbit in the equatorial plane and appears stationary over a fixed point on the Earth.
• In contrast, a geosynchronous orbit may have an inclination or eccentricity, and the satellite may appear to move relative to a point on Earth.
• Note: Every geostationary orbit is geosynchronous, but every geosynchronous orbit is not geostationary.

How EOS-05 Will Reach Its Final Orbit

---

• GSLV-F17 placed EOS-05 initially into a transfer orbit rather than directly into its final geosynchronous orbit.
• The satellite will use its onboard propulsion system to carry out a series of orbit-raising manoeuvres, gradually taking it to its intended geosynchronous orbit, around 36,000 km above the Earth’s surface.

Applications and Significance

---

• EOS-05’s frequent imaging capability could support disaster management, agriculture, forestry, natural-resource management and strategic applications.
• It can help monitor floods, forest fires and other natural disasters, supporting faster assessment and response.
• In agriculture, satellite data can assist in monitoring crop conditions and changes in agricultural land.
• It can also support forest monitoring, land-use assessment and natural-resource planning.
• From a strategic perspective, frequent observation can improve situational awareness and support monitoring of India’s land and maritime domains.
• The satellite therefore adds to both India’s developmental and national security infrastructure.
• Geosynchronous imaging is particularly significant because LEO satellites, while providing high-resolution data, can observe a location only during periodic passes.
• Frequent observation of the same region can improve the speed of detecting changes and making information available to decision-makers.

Why was GSLV called the “Naughty Boy”?

---

• The GSLV was informally referred to as ISRO’s “naughty boy” because of its mixed record of successes and failures, particularly during the early stages of India’s efforts to master cryogenic engine technology.
• The vehicle faced several failures linked to difficulties involving its upper stage and cryogenic systems.
• Over time, ISRO improved the vehicle through design modifications, extensive testing, advances in cryogenic technology, detailed failure analysis and stronger review mechanisms.
• The successful EOS-05 mission therefore represents another step towards strengthening confidence in the reliability of the GSLV programme.

Recent Setbacks and ISRO’s learning culture

---

• The mission came after a challenging period in which several ISRO missions during 2025 and 2026 faced setbacks.
• Following these failures, ISRO carried out detailed reviews, additional checks and extensive testing before proceeding with subsequent launches.
• EOS-05 itself was subjected to further checks despite being ready earlier.
• The process highlights the importance of:

Failure analysis → Design review → Additional testing → Corrective measures → Improved mission reliability

• The ISRO Chairman also highlighted the importance of an open work culture and strong review mechanism.
• For complex technological programmes, reliability depends not only on hardware but also on transparent technical reviews, cross-disciplinary expertise, learning from failures, quality assurance and institutional accountability.

ISRO-Industry-Academia Partnership

---

• The mission also reflects growing cooperation among ISRO, Indian Industry and Academia.
• Such collaboration can strengthen satellite and component manufacturing , launch vehicle development, space applications, geospatial technologies, research and commercial space services.
• Greater private-sector participation can expand India’s space capabilities, while ISRO continues to play a central role in advanced technology development and strategic missions.
• This can also strengthen India’s position in the growing global commercial space sector.

Challenges

---

• Despite the progress, India faces several challenges, including the high cost of advanced satellites, the need for greater launch-vehicle reliability and the capacity to process large volumes of satellite data.
• Effective use of such data also requires stronger integration with ground-level information and decision-making systems.
• Expanding private-sector participation will require appropriate quality, regulatory and security frameworks, while India must also compete in an increasingly competitive global commercial space sector.

Conclusion

---

The EOS-05 mission strengthens India’s Earth-observation capabilities while highlighting the growing importance of reliable launch systems, technological self-reliance and collaboration between ISRO, industry and academia.

UPSC Prelims Practice Question

---

Consider the following statements

1. EOS-05 is India’s first dedicated Earth-imaging satellite intended for placement in a geosynchronous orbit.
2. It is useful for disaster management, agriculture, forestry, natural resources and strategic applications.
3. GSLV’s development has been closely associated with India’s efforts towards indigenous cryogenic technology.

Which of the statements given above is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

Answer: D

---

Why Is Manipur Demanding NRC Before The Census?

Source: Indian Express
GS I: Indian Society, GS II: Polity & Governance, GS III: Internal Security

---

Why in the News?

The Union government has deferred the 2027 Census in Manipur amid demands from sections of the State for an NRC to be conducted before the Census.

News in Brief

---

• The decision followed discussions involving Union Home Minister Amit Shah, Manipur Governor Ajay Kumar Bhalla and Chief Minister N. Biren Singh.
• The Manipur government has argued that the Census should be conducted only after implementation of the National Register of Citizens (NRC).
• Manipur’s ethnic geography broadly divides the State into valley areas dominated by Meiteis and hill areas predominantly inhabited by Naga and Kuki-Zomi communities.
• The NRC demand predates the May 2023 ethnic violence and has become closely linked with concerns over immigration, demographic change, displacement and delimitation.

Manipur’s Ethnic and Demographic Context

---

• Manipur has 16 districts and is broadly divided between the valley, predominantly inhabited by the Meitei community, and the hill areas, inhabited largely by Naga and Kuki-Zomi communities.
• This geographical division has made questions of population and demographic change politically sensitive.
• Some Meitei civil society organizations and Naga groups have expressed concerns that migration from Myanmar may have altered Manipur’s demographic composition.
• They argue that an NRC should be conducted before the Census to distinguish Indian citizens from illegal immigrants and establish a credible demographic baseline.
• The demand, therefore, goes beyond a routine citizenship exercise.
• It is closely connected with concerns over identity, land, political representation and the changing demographic balance in the State.

Reason behind the growing NRC Demand

---

Three major concerns have strengthened the demand.

• First is citizenship and demographic change.
  • Organisations supporting the NRC believe that population growth figures may not accurately reflect the demographic situation if undocumented migrants are included in the Census.
  • They therefore want citizenship verification before a fresh population enumeration.
• Second is displacement caused by the ethnic conflict that began in May 2023.
  • Large numbers of people were displaced from their homes and continue to live away from their original places of residence.
  • A Census conducted during such conditions could reflect the immediate consequences of displacement rather than the long-term demographic distribution of the population.
• The third concern is delimitation and political representation.
  • Population data forms an important basis for the readjustment of constituencies.
  • A new Census followed by delimitation could potentially change the existing balance of Assembly representation between the valley and hill regions.

The Demand Predates the 2023 Violence

• The NRC demand did not originate with the recent ethnic conflict.
• In June 2022, the Coordinating Committee on Manipur Integrity (COCOMI), representing Meitei civil society, and the United Naga Council (UNC) jointly sought the implementation of an NRC and the creation of a State Population Commission.
• The issue was further amplified by concerns over population growth in hill districts.
• A 2022 Assembly resolution cited unusually high population growth figures in these areas, contributing to fears about demographic change.
• However, such figures alone cannot establish illegal immigration.
• Population changes can result from migration, natural increase, administrative changes and other factors.
• The demand received institutional attention when the Manipur government constituted a State Population Commission in February 2023.

Myanmar Crisis and Migration Concerns

---

• The issue became more sensitive after the military coup in Myanmar in 2021.
• Conflict in Myanmar’s Chin State and neighboring areas led to people crossing into India.
• Given the ethnic and familial connections between communities across the India-Myanmar border, migration became a particularly sensitive political issue in Manipur.
• The Manipur government increasingly linked concerns over new settlements, encroachments, and demographic change with migraiton.
• However, Kuki organizations have disputed this interpretation, arguing that legitimate Indian citizens should not be conflated with recent arrivals from Myanmar.
• Thus, the debate involves a difficult intersection of border migration, ethnic identity, citizenship and demographic change.

NRC, Census and Delimitation

---

• Some organisations, particularly the United Naga Council, have demanded a specific sequence:

NRC → Census → Delimitation

• The argument is that citizenship should first be verified before population figures are used for political representation.
• The UNC has sought an NRC using 1951 as the base year and opposed delimitation before such an exercise.
• The demand has also gained political support across party lines, indicating that the issue has acquired significance beyond civil society organisations.

The Kuki-Zomi Position

---

• The Kuki-Zomi Council has opposed conducting an NRC before the Census, describing such a move as premature.
• It argues that demographic claims should first be examined using credible population data and that the Census is the appropriate mechanism for this purpose.
• The Council has also raised concerns that allegations of demographic change are sometimes used to question the citizenship of legitimate members of the Kuki-Zomi community.
• It supports delimitation based on verified demographic data.

Significance of Delimitation in Manipur

---

• Manipur has 60 Assembly seats, with 40 in the valley and 20 in the hills.
• The existing arrangement dates back to the 1973 delimitation exercise based on the 1971 Census.
• A future delimitation based on updated population figures could alter this distribution.
• This has created apprehension among sections of the valley’s political class that their existing political advantage could be reduced.
• Therefore, the NRC debate is ultimately linked to a larger question: who is counted, where they are counted and how those numbers influence political power.

Fear of Losing Political Advantage

---

• Sections of the valley’s political class fear that a new Census followed by delimitation could alter the existing 40 valley : 20 hills distribution of Assembly seats.
• Updated population figures could potentially lead to a shift such as 35:25 or 30:30, affecting the balance of political representation.
• Thus, the issue involves:

Population → Delimitation → Political Representation → Distribution of Power

Scope for a Manipur-Specific NRC

---

• Under Section 14A of the Citizenship Act, 1955, the Centre can compulsorily register Indian citizens and maintain the National Register of Indian Citizens (NRIC).
• There is no explicit requirement that such an exercise must be conducted simultaneously across India.
• However, conducting an NRC specifically in Manipur would remain a significant legal, administrative and political decision.

NRC as One of Several Policy Options

---

• The NRC is not the only option for addressing demographic concerns.
• The High-Level Committee on Demographic Change, announced in May 2026, will examine changes arising from illegal immigration and other abnormal factors and recommend appropriate policy, legislative and administrative measures.
• Its recommendations could help shape a broader response to Manipur’s demographic concerns.

Way Forward and Conclusion

---

Manipur’s demographic concerns require a balanced and evidence-based approach. Any response must address genuine concerns over illegal immigration and border management while ensuring that legitimate citizens are not wrongly excluded.

The Census, NRC and future delimitation should be based on credible data, transparent procedures and constitutional safeguards, rather than relying on any single mechanism alone. The concerns of all communities must be taken into account, particularly in the context of ethnic tensions and conflict-induced displacement.

UPSC Prelims and Mains Practice Question

---

Consider the following statements regarding the NRC and Census in Manipur:

1. The NPR is a register of Indian citizens, whereas the NRC is a register of usual residents.
2. Delimitation can have implications for the distribution of political representation among regions.
3. Section 14A of the Citizenship Act, 1955 provides for compulsory registration of Indian citizens and maintenance of the National Register of Indian Citizens.

Which of the statements given above is/are correct?

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) 1,2 and 3

Answer: 2 and 3 only.

Mains Practice Question

Q. Explain how Census, NRC and delimitation are interconnected in the context of Manipur. What Constitutional and administrative safeguards are necessary to address demographic concerns without aggravating ethnic tensions? (250 words)

---

Viksit Bharat@2047

Source: Indian Express
GS I: Society- Human Capital, demographic dividend; GS II: Governance- Cooperative Federalism, Government policies and interventions, local governance; GS III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment

---

Why in the News?

The Indian Express article discusses the Viksit Bharat@2047 vision, under which India aims to become a developed nation by the 100th anniversary of Independence in 2047.

News in Brief

---

• Viksit Bharat@2047 was articulated by Prime Minister Narendra Modi in his Independence Day address, with the goal of transforming India into a developed nation by 2047.
• NITI Aayog has projected an ambitious economic trajectory involving $30 trillion GDP and $15,000–18,000 per capita income, requiring sustained annual growth of around 7% or more.
• The 2026 Independence Day address highlighted Sapta Dhara-  seven major streams of development.
• It includes manufacturing, agriculture and food processing, technology and innovation, infrastructure and connectivity, defence self-reliance, green and blue economy, and soft power.

Viksit Bharat@2047

---

• The central objective of Viksit Bharat@2047 is to transform India into a developed nation by 2047, when the country completes 100 years of Independence.
• The vision is not limited to achieving higher GDP growth.
• It envisages broader development that improves both the country’s economic strength and the quality of life of its people.
• This includes,
  • Economic prosperity and higher incomes
  • Technological advancement and innovation
  • Modern infrastructure and better connectivity
  • Social development and improved human capital
  • Greater self-reliance in key sectors
  • Environmentally sustainable growth
  • Strong and effective institutions
  • National unity and social cohesion
  • Responsible and active citizenship
• Thus, Viksit Bharat@2047 is not merely an economic target.
• It represents a broader effort to transform India’s economy, society and institutions while ensuring that growth is inclusive, sustainable and beneficial to all sections of society.

Pancha Pran

---

• The vision linked with  Pancha Pran, or five pledges, form an important part of India’s vision for the Amrit Kaal.
• They include,
  • Making India a developed nation
  • Removing the colonial mindset
  • Taking pride in India’s heritage
  • Strengthening unity and solidarity
  • Fulfilling the duties and responsibilities of citizens
• Thus, the vision of Viksit Bharat combines economic progress with social, cultural and behavioural transformation.

Economic Ambition

---

• The Viksit Bharat vision is associated with ambitious long-term economic goals.
• India aims to build a significantly larger economy by 2047, with higher per capita incomes and sustained economic growth.

Indicator	Broad Target
GDP	$30 trillion
Per capita income	$15,000–18,000
Long-term economic growth	7%+ annually

• Achieving these targets would require India to maintain high economic growth for several decades.
• However, growth alone will not be sufficient.
• India will also need to improve productivity, create adequate employment opportunities, strengthen human capital and ensure that rising economic growth translates into better living standards.

Key Challenges

• Sustaining an annual growth  rate of  over 7% for a prolonged period will be challenging.
• India’s growth prospects can be affected by several domestic and global factors including,
  • Global economic slowdowns and financial shocks
  • Geopolitical conflicts and uncertainty
  • Trade disruptions and rising protectionism
  • Demographic and employment pressures
  • Climate change and extreme weather events
  • Low productivity in certain sectors
• Therefore, achieving the economic ambitions of Viksit Bharat will require not only sustained growth but also structural reforms, higher investment, productivity improvements and the ability to respond to changing global and domestic challenges.

India’s Recent Growth Performance

---

• India has continued to record strong economic growth despite the disruptions caused by the COVID 19 pandemic and an uncertain global economic environment.
• Reported real GDP growth rates were,
  • 2023–24: 7.3%
  • 2024–25: 7.2%
  • 2025–26: 7.8%
• A growing economy can create more opportunities for investment, employment and higher incomes, while also giving the government greater capacity to invest in infrastructure and social development.
• However, high GDP growth alone does not automatically make a country developed.
• The benefits of growth must reach people through productive employment, rising incomes and improvements in education, healthcare and other aspects of human development.

Sapta Dhara- Seven Development Priorities

---

Manufacturing Power

• India seeks to move beyond being primarily a services-driven economy and build a strong manufacturing base.
• Manufacturing can create large-scale employment, increase India’s export capacity and help domestic firms become part of global supply chains.
• A competitive manufacturing sector can also reduce dependence on imports and support India’s broader industrialisation goals.

Agriculture and Food Processing

• The focus in agriculture needs to extend beyond increasing production.
• Greater value can be created by improving processing, storage, logistics and market access.

Farm → Processing → Storage → Logistics → Markets → Exports

• A stronger food-processing ecosystem can reduce post-harvest losses, create employment in rural areas, improve value addition and provide farmers with better income opportunitis.
• It can help India expand its presence in agricultural and procsessed food exports.

Technology and Innovation

• Technology will play an increasingly important role in improving productivity and strengthening India’s global competitiveness.
• Areas such as artificial intelligence, semiconductors, biotechnology, digital technologies and other emerging fields will be important for future growth.
• However, India cannot remain only a consumer or adopter of new technologies.
• Building long-term technological strength will require greater investment in research and development and the ability to develop indigenous technologies and innovation capabilities.

Infrastructure and Connectivity

• Reliable physical and digital infrastructure is essential for a modern and competitive economy.
• Better roads, railways, ports, airports and logistics networks can reduce the cost and time involved in moving goods and people.
• Similarly, digital and energy infrastructure will be crucial for supporting industries and expanding access to economic opportnities.
• Stronger connectivity can also promote balanced regional development by linking less-developed areas with larger markets.

Self-Reliance in Defence Production

• Strengthening domestic defence manufacturing is important not only from an economic perspective but also for national security.
• Reducing excessive dependence on imported defence equipment can improve India’s strategic autonomy.
• Greater domestic production can also encourage indigenous technological development, support industrial growth and create opportunities for defence exports.
• In this sense, defence self-reliance links the broader goal of Atmanirbhar Bharat with India’s security requirements.

Green and Blue Economy

• India’s growth will have to take place alongside greater environmental responsibility.
• The green economy focuses on areas such as renewable energy, green hydrogen, energy efficiency, electric mobility and the circular economy.
• At the same time, the blue economy offers opportunities through the sustainable use of marine resources, fisheries, ports, shipping, coastal industries and ocean-based renewable energy.
• The larger challenge is to ensure that rapid economic development does not lead to unsustainable use of natural resources or environmental degradation.

Soft Power

• India’s global influence is not shaped only by its economic and military strength.
• Its culture, civilizational heritage, yoga, Ayurveda, tourism, Indian knowledge systems and diaspora also contribute to its international presence.
• Education and diplomacy can further strengthen these connections.
• By effectively using these strengths, India can build goodwill and expand its influence in global affairs.
• Thus, soft power can complement India’s economic and strategic capabilities and contribute to a stronger international role.

Need for a change in Work Culture

---

• Achieving the goals of Viksit Bharat will depend not only on the policies it adopts, but also on how effectively those policies are implemented on the ground.
• This calls for,

Change in work culture + Change in thinking + Faster reforms

• A change in work culture would mean greater efficiency, accountability and focus on outcomes.
• Similarly, a change in thinking is necessary to move away from conventional approaches and respond to new economic and technological challenges.
• Faster reforms and better implementation will also be required to improve,
  • Administrative efficiency
  • Policy implementation
  • Institutional capacity
  • Decision-making
  • Centre-State coordination
  • Local governance
  • Ease of doing business
  • Regulatory efficicency

India’s Development Compared with China

---

• In 1980, India and China had broadly comparable GDP sizes, while India’s per capita income was higher.
• However, China grew much faster in the following decades.
• By 2000, China’s GDP had reached around $1.22 trillion, compared with India’s $468 billion.
• China’s rapid rise was supported by sustained investment in manufacturing, industrialisation, infrastructure and exports, eventually making it a major global manufacturing centre.
• However, India’s development strategy cannot simply replicate the Chinese model.
• India has a different demographic profile, democratic and federal political structure, labour market and pattern of domestic consumption.
• Environmental concerns and resource constraints also make the development context different.
• The lesson for India, therefore, is to build a development model  suited to its own economic and institutional conditions.

Desired Transformation

• India’s economic growth has been strongly supported by its services sector, particularly IT, IT-enabled services, business services and financial services, earning it the description of the ” office of the world”.
• Going forward, India needs to complement its services strength with stronger manufacturing and innovation capabilities.
• This can support employment, exports, technological development and greater integration with global value chains.

Role of Indian Companies

• A developed economy requires not only a large GDP but also globally competitive companies and strong financial institutions.
• India needs more firms that can compete internationally, innovate, expand into global markets and strengthen India’s economic presence worldwide.

Whole-of-the-Nation Approach

---

Viksit Bharat cannot be achieved by the Union government alone. It requires

Whole-of-Government → Whole-of-Society → Whole-of-Nation

• This includes the participation of:
  • Union, State and Local Governments
  • Bureaucracy and institutions
  • Industry and entrepreneurs
  • Farmers and workers
  • Educational and research institutions
  • Scientists and the technology sector
  • Civil society and citizens.
• Achieving Viksit Bharat will therefore depend on effective governance, coordinated action and shared responsibility across society.

Key Challenges to Viksit Bharat@2047

---

• Employment– Economic growth must create sufficient productive and quality employment, especially for India’s growing workforce.
• Manufacturing– India needs to improve manufacturing competitiveness and strengthen its integration with global value chains.
• Human Capital– Better education, healthcare, nutrition and skill development are essential for a productive workforce.
• Regional Disparities- Development remains uneven across States, regions, rural and urban areas and different social groups.
• Infrastructure- Gaps in logistics, urban infrastructure and reliable energy supply can affect long-term growth.
• Climate Change– India must balance economic growth with energy security, environmental sustainability and climate commitments.
• Institutional Capacity– Effective institutions and better implementation at all levels of government will be crucial.
• Global Uncertainties- Geopolitical tensions, protectionism, supply-chain disruptions and global slowdowns can affect India’s growth path.

Way Forward and Conclusion

---

Achieving Viksit Bharat@2047 will require sustained and inclusive growth, stronger manufacturing, better human capital, innovation and quality infrastructure. Faster reforms and effective coordination between governments, businesses and citizens will also be crucial.

Ultimately, the success of Viksit Bharat will depend not only on economic growth but on its ability to create better jobs, higher incomes and an improved quality of life for all.

UPSC Prelims and Mains Practice Question

---

Consider the following statements regarding Viksit Bharat@2047:

1. It aims to transform India into a developed country by 2047.
2. The vision is limited to achieving a higher GDP and does not cover social development.
3. Manufacturing, technology, infrastructure and sustainable development are relevant to the vision.

Which of the statements given above is/are correct?

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) 1,2 and 3

Answer: 1 and 3 only

Mains Practice Question

Q. Viksit Bharat@2047 requires a whole-of-nation approach. Examine the importance of cooperative federalism and effective local governance in achieving this objective. (250 words)

Q. India’s ambition of becoming a developed country by 2047 requires more than sustained GDP growth. Discuss the importance of employment, manufacturing, human capital, innovation, and sustainable development in achieving Viksit Bharat@2047. (250 words).

---

Daily Current Affairs: Click Here

Rate this Article and Leave Feedback