Parliamentary Panel Pushes for 35% Capital Spending Ratio to Hit Ambitious 8% Growth Goal

A Parliamentary Standing Committee on Finance has recommended that India should aim for 8% annual economic growth over the next decade. To achieve this, the panel said the country must raise its investment spending from the current 31% of GDP to 35%. 

Why Should India Focus on Domestic Growth?

The panel warned that relying too much on foreign funding could increase the current account deficit, which is risky in today’s global environment. It said India must focus on domestic-led growth and create a more investor-friendly climate. This includes reducing regulatory hurdles and improving the ease of doing business through a deregulation task force.

Energy Reforms for Growth and Security

On energy, the committee called for sustainable policies that balance economic growth, affordability, and climate goals. It asked the government to speed up pumped storage projects (PSPs), which are important for energy security and reducing reliance on imports. The panel also suggested fiscal reforms for highly indebted states so they can invest more in infrastructure and social welfare.

Agriculture as a Key Growth Driver

The report highlighted the role of agriculture in promoting inclusive growth. It recommended both short-term support and long-term reforms. Steps like maintaining food buffer stocks and subsidies help stabilise prices and ensure food access. The panel also supported digital tools like land record digitisation and the agri-stack platform to improve farm productivity and link farmers with financial systems.

It suggested training local youth in data collection, encouraging crop diversity, improving supply chains, and involving the private sector in agri-tech to raise farmer incomes.

Boosting Manufacturing and Building Atmanirbhar Bharat

Noting global trade challenges, the committee urged India to use the current global situation to boost domestic manufacturing and expand into new markets. It said the principle of “Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas” should guide the country toward self-reliance (Atmanirbhar Bharat).

Technology, Inclusion, and Long-Term Planning

The panel also underlined the need for technological innovation. It proposed setting up a government-owned AI server to protect data privacy and improve governance. It stressed better public spending, increased wages, mental health support, and reskilling of workers to improve productivity.

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Conclusion

The committee believes that India must look beyond just achieving a $5 trillion economy. A long-term growth strategy based on investment, energy security, agriculture reforms, and innovation is essential. With inclusive and sustained efforts, the panel says India can achieve strong, resilient, and balanced economic growth.

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