India must sustain an annual economic growth rate of approximately 7–8 per cent to realise the vision of 'Viksit Bharat' (developed nation) by 2047, according to S Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM). Speaking at the FICCI 'India Innovative Crop Nutrition Conclave 2026' in New Delhi, Dev outlined the structural reforms and policy priorities needed to achieve this ambitious target.
Growth drivers: Private investment and exports
Dev emphasised that achieving the Viksit Bharat objective will depend largely on a resurgence in private investment and strong expansion in exports. "We need investment for that. So, private sector investment is equally important, and export growth is also important," Dev said. He noted that the Prime Minister has mentioned Atmanirbhar Bharat (self-reliant India), which is equally important in this context.
The policy framework, according to Dev, does not signal a retreat from global trade. Instead, the focus remains on building domestic capability to leverage the country's current demographic and technological advantages. He stressed enhancing India’s competitiveness and product quality to meet global standards. The government has identified specific areas to reduce import dependencies, compiling a list of 100 items where domestic manufacturing can substitute foreign goods.
Agriculture's role and diversification
Dev said the agriculture sector has an important role to play in achieving the growth target. The farm sector needs to be more diversified, nutritious, sustainable, and climate resilient. He asserted the need to reduce consumption of chemical fertilisers through crop diversification, promotion of natural farming, and offering incentives linked to productivity gains. Improving crop productivity is essential.
Fertilizer sector reforms and import trends
Addressing fertilizer challenges, Dev pointed out that the West Asia conflict has created supply problems and increased subsidy burdens. However, global urea prices have come down sharply — from over $900 to $450 a tonne. India imported over 10 million tonnes of urea in the 2025-26 fiscal, and sources of imports are getting diversified alongside a focus on raising domestic production.
Dev listed several fertilizer sector reforms that have been in the right direction:
- Neem-coated urea
- Direct benefit transfer (DBT)
- Soil health cards
- Nano-urea
- PM-PRANAM scheme
- Natural farming mission
- Nutrient Based Subsidy
As a next step, Dev proposed considering a National Nutrient Use Efficiency Initiative that shifts focus from the quantity of fertilizer consumed to the productivity it generates. This could be done through district-level efficiency benchmarking, crop-wise nutrient productivity targets, and outcome-linked incentive grants.
Inflation and growth projections
On the macroeconomic outlook, Dev said, "Overall, because of the West Asia war and also a bit of El Nino, I agree with the RBI projection of 6.6 per cent growth and also 5.1 per cent inflation." He added that structural reforms implemented over the last few years laid the groundwork for Viksit Bharat.
The following table summarizes key projections and targets mentioned by Dev:
| Indicator | Value | Source/Context |
|---|---|---|
| Required annual GDP growth | 7–8% | To achieve Viksit Bharat by 2047 |
| FY2026 GDP growth projection | 6.6% | RBI, agreed by Dev |
| FY2026 inflation projection | 5.1% | RBI, agreed by Dev |
| Urea price decline | $900/tonne to $450/tonne | Global prices |
| India's urea imports in FY2026 | >10 million tonnes | Dev's statement |
Next milestones
For corporate strategists and investors, the key policy signals are clear: India's growth trajectory hinges on sustained private capital formation, export competitiveness, and agricultural transformation. The government's focus on import substitution (100 items) and fertilizer efficiency will shape sectoral opportunities. The RBI's next monetary policy review will be closely watched to see if inflation trends allow for rate adjustments supportive of the 7–8% growth target.
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