2025/12/01 by Supriya Sanjay Nikam, Nikam, Supriya Sanjay, Satyanarayan Kishan Kothe +1
Economics, Econometrics and Finance · Social Sciences · #FOS: Economics and business #Fiscal Policies and Political Economy #General Economics (econ.GN) #Indian Economic and Social Development #Sociopolitical Dynamics in Nepal
paper · pdf · doi:10.48550/arxiv.2512.01469
openalex publication_date 2025/12/01 · openalex created_date 2025/12/03 · openalex updated_date 2026/07/28
This paper examines the fiscal and macroeconomic strategies essential for transition of India to a high income economy by 2047, aligning with the vision of Viksit Bharat. A sustainable annual GDP growth rate of 7 to 8 percent is projected as necessary to achieve this milestone while maintaining fiscal prudence through a targeted deficit threshold below 3.5 percent of GDP. The study underscores the role of disciplined fiscal management in financing critical public investments in infrastructure, human capital development and technological innovation. Given constraints on domestic resource mobilization, the paper highlights the importance of multilateral financial institutions, including the World Bank, IMF and ADB, in expanding fiscal space in India through concessional financing, technical cooperation, and risk sharing mechanisms. Using econometric modeling and scenario analysis, the research identifies key policy interventions in infrastructure, healthcare, education and sustainable energy that can maximize growth while ensuring fiscal sustainability. Policy recommendations include enhancing tax buoyancy, rationalizing expenditure, optimizing public private partnerships and strengthening fiscal responsibility frameworks. The findings suggest that a calibrated approach to growth, prudent fiscal management and strategic international collaborations are critical to achieving long term economic aspirations of India.