The Discussion Paper titled ‘A Plea for Inclusive and Sustainable Growth’ critically examines the levers of change to achieve sustained growth and improve living standards.  As India stands at a crucial economic juncture, fiscal discipline, infrastructure improvements, and a strong investment climate have driven progress. However, rising risks—such as an aging population and global economic slowdown—threaten the country’s trajectory. As the old-age dependency ratio rises, leveraging the remaining demographic dividend is critical for long-term growth. Additionally, technological stagnation and slowing global population growth mean that 21st-century economic expansion may not match the previous century’s pace. Within this context, India must maximize productivity and drive domestic-led growth.

However, political divisions pose a challenge. There is a clash between fiscal prudence and short-term welfare measures, with populist policies risking long-term economic health. Sustainable growth demands a balanced approach that integrates fiscal discipline, effective governance, and inclusive growth.

The paper proposes a three-part framework:

1. Fiscal Prudence – Ensuring responsible welfare spending while maintaining long-term investments and intergenerational equity.
2. Empowering Local Governments – Increasing resource devolution and accountability to strengthen governance.
3. Small-Town Development – Promoting in-situ urbanization to generate employment and support the unorganized workforce.

With 80–90% of the workforce within the unorganized sector, 65% of the population residing in rural areas, and 46% of the population dependent on Agriculture, ensuring inclusive growth is essential for economic stability. The Paper advocates for fiscal discipline, efficient governance, and strategic investments that can secure India’s long-term prosperity and equitably distribute growth benefits.